Physical examination of assets is NOT a sufficient form of evidence when the auditor wants to determine the:
A) ownership of the asset.
B) condition or quality of the asset.
C) existence of the asset.
D) quantity and description of the asset.

Question

Quizplus · Accepted Answer

Physical examination can confirm the existence, condition, and quantity of an asset, but it cannot verify ownership, which requires documentation.

Physical Examination of Assets Is NOT a Sufficient Form of Evidence