The Engineering Department at Omni Company Built a Piece of Equipment

question 46

Multiple Choice

The engineering department at Omni Company built a piece of equipment in the company's own shop for use in the company's operations. The auditor reviewed all work orders that were capitalized as part of the equipment costs. Which of the following is the ASB transaction assertion most closely related to the auditor's testing?

• A)Occurrence.
• B)Completeness.
• C)Accuracy.
• D)Classification.

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Definitions:

Abnormal Returns

Returns on a security or portfolio that differ significantly from the expected rate of return, often resulting from specific events.

Macro Forecasting

Macro Forecasting involves projecting the overall economic conditions and trends, such as inflation rates, interest rates, and GDP growth, to inform investment decisions.

Investments

The allocation of resources, such as time, money, or effort, in the expectation of generating an income or profit.

Market Value

The current price at which an asset or company could be bought or sold in the market.