When Reviewing a Loan Agreement to Ascertain Whether the Bank's

question 22

Multiple Choice

When reviewing a loan agreement to ascertain whether the bank's security over any of the client's assets has been included in the financial report, the audit assertion being achieved is:

• A)valuation and allocation.
• B)completeness.
• C)presentation and disclosure-accuracy and valuation.
• D)presentation and disclosure-completeness.

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Definitions:

Vendors and Expenses

Categories within accounting that track and manage the costs incurred from purchasing goods or services from suppliers.

Purchase Order

An official document issued by a buyer committing to pay the seller for the sale of specific products or services to be delivered in the future.

Vendor Transaction

A financial operation involving the purchase of goods or services from a supplier.

Receive Inventory

The process of accepting and documenting items or goods that are delivered to a company's warehouse or point of sale, often involving the update of inventory records.