In Testing Plant and Equipment Balances, an Auditor Examines New

question 41

Multiple Choice

In testing plant and equipment balances, an auditor examines new additions listed on an analysis of plant and equipment. This procedure most likely obtains evidence concerning management's assertion of

• A) Completeness.
• B) Occurrence.
• C) Classification.
• D) Accuracy.

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Definitions:

Documents Of Title

Legal documents that evidence a person's right to control the disposition of goods or properties, such as bills of lading or warehouse receipts.

Bailment

The temporary transfer of possession of personal property from one party to another, with the expectation of its return.

Bailee's Lien

A right that allows a bailee (a person who temporarily holds property for another) to retain possession of the property until payment is made.

Right To Sell

The legal authority granted to an individual or entity to sell a particular product, property, or service.