All of the Following Can Assist the Auditor in Testing

question 40

Multiple Choice

All of the following can assist the auditor in testing the existence assertion for investment securities except:

• A)physical examination.
• B)comparing fair value to cost.
• C)confirmation with the issuer.
• D)confirmation with the custodian.

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Definitions:

Power Factor

A dimensionless number representing the ratio of real power flowing to the load to the apparent power in the circuit, indicating efficiency in electrical systems.

Energy

The ability to do work, which can be transferred between objects and converted into different forms, such as electrical, thermal, or mechanical.

Pull-up Torque

The minimum torque generated by an electric motor during the acceleration from standstill to the speed where torque is maximum.

Breakdown Torque

The maximum torque a motor can produce when operating at full load, before the motor stalls or overheats.