If the Auditor Determines That Beginning Balances of Fixed Assets

question 51

Multiple Choice

If the auditor determines that beginning balances of fixed assets have not changed from previously audited amounts,much of the testing for existence can be accomplished by which of the following?

• A)sampling receiving reports.
• B)inquiring of management.
• C)vouching current period additions.
• D)recomputing depreciation.

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Definitions:

Interest Income

Income that is earned from deposit accounts or investments that pay interest, such as savings accounts, bonds, or loans.

Nova Scotia

A province located on Canada's southeastern coast, known for its high tides, lobster fishing, and historic sites.

Capital Gains

The profit earned from the sale of an asset or investment for more than its purchase price.

Interest Income

The revenue earned from lending funds or through investments in interest-bearing financial instruments.