In Testing Plant and Equipment Balances, an Auditor May Physically

question 31

Multiple Choice

In testing plant and equipment balances, an auditor may physically inspect new additions listed on the summary of plant and equipment transactions for the year. This procedure is designed to obtain evidence concerning management's assertions about classes of transactions and events, and specifically, which assertion?

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

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Definitions:

Insula

A region of the brain located deep within the cerebral cortex, involved in consciousness and the regulation of emotion.

Temporal Lobe

A region of the brain located beneath the lateral fissure on both cerebral hemispheres, involved in processing auditory information and encoding memory.

Parietal Lobe

A region of the cerebral cortex involved in processing sensory information regarding the location of parts of the body as well as interpreting visual information and processing language and mathematics.

Frontal Lobe

The part of the cerebral cortex that lies at the front of the brain, associated with higher cognitive functions such as reasoning, planning, parts of speech, movement, emotions, and problem-solving skills.