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:

Ascus

A sac-like structure in fungi in which spores are produced through sexual reproduction.

Pelvic Inflammatory Disease

An infection of the female reproductive organs, often caused by sexually transmitted bacteria.

Abbreviation

A clipped version of a word or phrase.

Papanicolaou

A test, also known as a Pap smear, used to detect cervical cancer in women, involving the collection of cells from the cervix.