By Selecting a Sample of Additions to Property, Plant, and Equipment

question 65

Multiple Choice

By selecting a sample of additions to property, plant, and equipment and then examining the related vendor invoices, the auditor is testing which of the following assertions for property, plant, and equipment?

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

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Definitions:

Excessive Requirements

Unreasonably high or unnecessary conditions or stipulations imposed, often making processes or achievements difficult to attain.

Unions

Organizations formed by workers from related sectors that work towards securing better pay, benefits, and working conditions for their members.

Economic Efficiency

A state where resources are allocated in the most beneficial way, maximizing output while minimizing waste.

Unions

Organizations that workers join to protect their interests and rights through collective bargaining.