The Auditor's Transaction-Related Audit Objective for Acquisitions, to Determine That

question 12

Multiple Choice

The auditor's transaction-related audit objective for acquisitions, to determine that recorded acquisitions are for goods and services received, relates to which accounting concept?

• A) existence
• B) completeness
• C) accuracy
• D) authorisation

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Definitions:

Investor

An individual or organization that allocates capital with the expectation of earning a financial return.

Corporation

A legal entity that is separate from its owners, providing them with limited liability, and recognized as a person under law that can enter into contracts, own assets, and be sued.

Partner's Liability

The legal responsibility of a partner in a partnership for the debts and obligations of the partnership.

Torts

Legal wrongs committed by one party against another, leading to civil legal liability and compensation claims, not arising from contractual obligations.