Which of the Following Is Likely the Most Effective Audit

question 6

Multiple Choice

Which of the following is likely the most effective audit procedure for the verification of the legal ownership of real property?

• A)Examination of correspondence with the corporate counsel concerning acquisitions.
• B)Examination of ownership documents registered and on file at a public hall of records.
• C)Examination of corporate minutes and resolutions concerning the approval to acquire property, plant, and equipment.
• D)Examination of deeds and title guaranty policies on hand.

---

Definitions:

Sales And Excise Taxes

Sales and excise taxes are forms of indirect taxation imposed on the sale of certain goods and services, where excise taxes are often levied on specific products like tobacco or alcohol.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, often used as inputs in the production of other goods or services.

Purchases

Purchases refer to the action of obtaining goods or services in exchange for money, marking a basic economic transaction between buyers and sellers.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the total income.