When auditing prepaid insurance, an auditor discovers that the original insurance policy on a key piece of
Question:
When auditing prepaid insurance, an auditor discovers that the original insurance policy on a key piece of manufacturing equipment is not available for inspection. The policy's absence most likely indicates the possibility of a(n)
a. Insurance premium due but not recorded.
b. Fictitious piece of equipment.
c. Third-party lien holder with a secured interest in the equipment.
d. Understatement of insurance expense.
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Related Book For
Auditing And Assurance Services
ISBN: 9780073527086
7th Edition
Authors: William MessierSteven Glover
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