Inspection of Assets Is Not a Sufficient Form of Evidence

question 18

Multiple Choice

Inspection of assets is not a sufficient form of evidence when the auditor wants to determine the

• A)existence of the asset.
• B)quantity and description of the asset.
• C)condition or quality of the asset.
• D)ownership of the asset.

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Definitions:

Material Handling Expenses

Costs incurred in the process of moving, protecting, storing, and controlling materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal.

Scrap Collection

The process of gathering waste materials or unwanted products for recycling or disposal.

Handling of Scrap

The management, processing, and recycling or disposal of waste materials or defective products produced by manufacturing processes.

Cost Savings

The reduction of expenses achieved through efficient management and operations strategies, leading to increased profits.