A Major Consideration in Verifying the Ending Balance in Permanent

question 63

Multiple Choice

A major consideration in verifying the ending balance in permanent assets is the possibility of existing legal encumbrances. Tests to identify possible legal encumbrances would satisfy the audit objective for:

• A) existence.
• B) classification.
• C) detail tie- in.
• D) disclosure.

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Definitions:

Androgyny

Androgyny is a state or condition in which an individual possesses both masculine and feminine characteristics, qualities, or traits.

Gender Typing

The process by which individuals are taught and learn the behaviors, interests, and abilities considered appropriate for their gender in their culture.

Primary Sex Characteristics

are the biological and physical traits directly involved in reproduction, such as the ovaries in females and testes in males.

Secondary Sex Characteristics

Physical features that appear during puberty which are not directly involved in reproduction, such as breast development in females and beard growth in males.