CAF-8 · Chapter 8 · Question 2 of 10
To test the 'Existence' assertion for a new, expensive piece of manufacturing machinery, which procedure is most effective?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Selecting the machine from the fixed asset register and physically inspecting it in the factory.
Explanation
Tracing from the accounting records (Fixed Asset Register) to the physical asset in the factory confirms that the asset recorded actually exists.
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