If the Auditor Traces a Sample of Receiving Reports to the Perpetual

question 23

True/False

If the auditor traces a sample of receiving reports to the perpetual inventory records,the auditor is testing the control of validity.

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Definitions:

Gain on Disposal

is the financial profit made from the sale of an asset, which exceeds its carrying amount.

Insurance Cheque

A payment issued by an insurance company to cover losses or claims.

Carrying Amount

Carrying amount, also known as book value, is the value recorded on the balance sheet for a particular asset, reflecting its original cost minus any depreciation, amortization, or impairment costs.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset over its useful life.