To Test the Existence Assertion for Recorded Receivables,an Auditor Would

question 50

Multiple Choice

To test the existence assertion for recorded receivables,an auditor would select a sample from the:

• A)Sales orders file.
• B)Customer purchase orders.
• C)Accounts receivable subsidiary ledger.
• D)Shipping documents (bills of lading)file.

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Definitions:

Transfer Of Ownership

Transfer Of Ownership involves the legal process by which the rights of owning an asset or property are moved from one party to another.

Corporation

A legal entity that is separate and distinct from its owners, capable of owning assets, incurring liabilities, and entering into contracts.

Capital Markets

Capital markets are venues where savings and investments are channeled between suppliers who have capital and those who are in need of capital.

Long-Term Debt

Debt that is due for repayment more than one year into the future.