When an Auditor Recomputes the Unexpired Portion of Prepaid Insurance

question 61

Multiple Choice

When an auditor recomputes the unexpired portion of prepaid insurance, they are satisfying which audit objective?

• A)Completeness
• B)Existence
• C)Accuracy and detail tie-in
• D)Rights

Analyze the legal ramifications of misrepresentation in contract formation.

Understand the legal requirements and consequences surrounding licensing for professional practice.

Recognize the conditions under which contracts violating state or federal statutes can be deemed invalid.

Learn about the distinction between necessary and non-necessary goods and services for minors.

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Definitions:

Drawee Bank

The bank upon which a check is drawn and is responsible for paying the amount specified.

Bank Officer

An individual who holds a management or executive position within a banking institution, responsible for certain operational aspects.

Stale Check

A check that has not been cashed or deposited within a certain timeframe, typically six months, and may not be honored by a bank.

Overdraft

An extension of credit from a lending institution when an account reaches zero, allowing for a negative balance.