Which of the Following Procedures Would Be Least Likely to Be

question 7

Multiple Choice

Which of the following procedures would be least likely to be included in an auditor's test of controls?

• A)Observation.
• B)Enquiry.
• C)Confirmation.
• D)Inspection.

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Definitions:

Current Asset

An asset that can reasonably be expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

Fixed Asset

A fixed asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income, and is not expected to be consumed or converted into cash within a year.

Usefulness

The degree to which something serves a practical purpose or satisfies a need.

Physical and Functional

Characteristics referring to the tangible aspects and performance capabilities of an asset or system.