Describe the Two Tests Auditors Can Perform to Test for the Existence

question 6

Essay

Describe the two tests auditors can perform to test for the existence and omissions of insurance policies in force.

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Definitions:

Formal Concepts

Abstract ideas or principles that are defined by clear, consistent rules or characteristics.

Unusual Uses Test

A creativity test that measures the ability of an individual to generate diverse and novel uses for common objects.

Creativity

The ability to generate new, diverse, and unique ideas, solutions, or products through imaginative skill and original thinking.

Deductive Thinking

A logical process where a conclusion is based on the concordance of multiple premises that are generally assumed to be true.