A Major Consideration in Verifying the Ending Balance in Permanent

question 80

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 which audit objective?

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

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Definitions:

Omission

The act of leaving out or excluding something, either intentionally or inadvertently, from consideration or action.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service.

Misrepresentation

A false statement or lie that deceives, misleads, or presents an inaccurate picture of the reality.

Omission

The act of leaving out or excluding information, actions, or entities, either intentionally or inadvertently.