An Auditor Will Usually Trace the Details of the Test

question 53

Multiple Choice

An auditor will usually trace the details of the test counts made during the observation of the physical inventory count to a final inventory schedule.This audit procedure is undertaken to provide evidence that items physically present and observed by the auditor at the time of the physical inventory count are

• A) Owned by the client.
• B) Not obsolete.
• C) Physically present at the time of the preparation of the final inventory schedule.
• D) Included in the final inventory schedule.

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Definitions:

Quiet Enjoyment

A tenant's right to possess and use a property without interference from the landlord or other third parties claiming ownership.

Fee Simple

The most extensive interest in real property, providing the owner with full ownership rights indefinitely.

Trespass

The act of entering someone's land or property without permission.

Public Nuisance

An act or omission that obstructs, damages, or inconveniences the rights of the community.