Methods used to determine if there are legal encumbrances related to fixed assets include all but which of the following?
A) Read the terms of loan and credit agreements.
B) Send loan confirmation requests to banks and other lending institutions.
C) Have discussions with the client or send letters to legal counsel.
D) All of the above may be used to identify legal encumbrances.
Correct Answer:
Verified
Q23: The most common audit test to verify
Q24: The failure to capitalize a permanent asset,
Q25: The auditor is examining the accounting entries
Q26: In determining the reasonableness of the client's
Q27: The auditor normally does not need to
Q29: A major consideration in verifying the ending
Q30: Because the failure to record disposals of
Q31: The auditor's starting point for verifying disposals
Q32: Improperly classifying a fixed asset by recording
Q33: The test of details of balances procedure
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