When Verifying Current-Year Additions to Manufacturing Equipment,the Two Major Objectives

question 69

Multiple Choice

When verifying current-year additions to manufacturing equipment,the two major objectives for this part of the audit are

• A)accuracy and classification.
• B)detail tie-in and cutoff.
• C)disclosure and completeness.
• D)rights and existence.

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Definitions:

Treasurer Liability

The financial responsibilities borne by the treasurer of an organization, including managing funds and financial risk.

Warranties

Legally binding promises or guarantees about the state or quality of a product or service, provided by the seller.

Presentment

The act of formally presenting a document, such as a check or bill of exchange, for acceptance or payment.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.