Physical examination is the inspection or count by the auditor of items such as:
A) cash, inventory, cancelled cheques and sales documents.
B) cash or inventory only.
C) cash, inventory, securities, notes receivable and tangible fixed assets.
D) cash, inventory, cancelled cheques and tangible fixed assets.

Question

Quizplus · Accepted Answer

Physical examination involves the physical inspection or count of all significant assets including cash, inventory, securities, notes receivable and tangible fixed assets. Cancelled cheques and sales documents are not always considered significant assets and may not require physical examination.

Physical Examination Is the Inspection or Count by the Auditor