The Main Focus Taken by the Auditor in Verifying Liability

question 19

Multiple Choice

The main focus taken by the auditor in verifying liability balances is on the discovery of:

• A) understated liabilities.
• B) overstated liabilities.
• C) unrecorded liabilities.
• D) overstated or extraneous liabilities.

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Definitions:

Tort Claim

A legal claim arising from an act or omission that causes injury or harm to another, allowing the injured party to seek compensation.

Evidence

Information or objects presented in court to prove or disprove facts in a legal case.

English Common Law

A legal system developed in England and used as the basis of jurisprudence in many English-speaking countries, characterized by the doctrine of judicial precedent.

Trespass

An unauthorized intrusion or entering onto someone else's property which infringes on the right of the owner.