A Major Consideration in Verifying the Ending Balance in Fixed

question 123

Multiple Choice

A major consideration in verifying the ending balance in fixed assets is the possibility of existing legal encumbrances. Tests to identify possible legal encumbrances would satisfy the audit objective of

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

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Definitions:

Mental Notes

Informal, non-written reminders or observations that an individual makes mentally during research or daily activities.

Complete Notes

Detailed and thorough written records taken during observations or research to capture all relevant information.

Analytic Notes

Written observations and reflections recorded by researchers during data collection and analysis to inform their findings.

Subjective Motivation

The personal, internal drivers that influence an individual's attitudes or behaviors, stemming from personal desires, values, or emotions.