For an Auditor to Test the Existence Assertion of Assets,testing

question 72

True/False

For an auditor to test the existence assertion of assets,testing will be performed beginning with the recorded asset and ending with the source documents.

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Definitions:

Buyer in the Ordinary Course of Business

A term that describes a purchaser who buys goods in good faith from a seller who routinely deals in such goods, without knowledge that the sale violates the rights of a third party.

Good Faith

Honesty in fact.

Goods

All physically existing things that are movable at the time of identification to the contract for sale.

United States Code

A comprehensive consolidation and codification of the general and permanent federal statutes of the United States.