The Auditor Evaluates the Internal Transfer of Assets and Related

question 35

Multiple Choice

The auditor evaluates the internal transfer of assets and related costs during the

• A)acquisition and payments cycle.
• B)human resources and payroll cycle.
• C)sales and collection cycle.
• D)inventory and distribution cycle.

---

Definitions:

Third-Party Rights

Third-party rights refer to the rights that the law grants to individuals or entities who are not directly involved in a contract but may be affected by it.

Donee Beneficiary

A third party who benefits from a contract made between two other parties.

Incidental Beneficiary

A third party who benefits from a contract between two other parties, despite not being a party to that contract and having no rights to enforce the terms of the contract.

Intended Beneficiary

A person or entity that is not a party to a contract but stands to benefit from the contract's performance.