The Auditor Selects a Sample of Asset Disposals and Examines

question 16

Multiple Choice

The auditor selects a sample of asset disposals and examines the sales documentation evidencing disposal of the equipment and recomputes gain or loss on the disposal.This audit procedure primarily tests which of the following assertions for the equipment account?

• A)Existence.
• B)Presentation and disclosure.
• C)Rights.
• D)Valuation.

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Definitions:

Value-Based Management

A management approach that ensures companies are managed consistently on value maximization, focusing on creating shareholder value over time.

Observable Culture

The visible elements of an organization's culture, such as behaviors, language, rituals, and symbols, that can be seen and experienced by members and outsiders.

Core Beliefs

Fundamental principles or values that are deeply ingrained in an individual's or organization's identity and guide behavior and decision-making.

Environmental Concerns

Issues related to the impact of human activity on the planet, including pollution, climate change, and resource depletion.