Dominic went to the warehouse to inspect a sample of 8 forklifts (chosen using unique asset numbers assigned to all assets by the client) from the 40 recorded in the ending balance of PP E Dominic documented the following, I was able to locate the 8 forklifts that I went to inspect I had to use the serial numbers to identify some of the forklifts since some of the unique asset numbers were missing Based on my procedures, I have some evidence re the assertions of Existence and Rights Obligations for the balance of forklifts at year end The client should switch to identifying forklifts using serial numbers since unique asset numbers are used inconsistently What would be your feedback to Dominic Question 50 options The fact that some forklifts were missing unique asset numbers is a failure of I C which would increase our assessment of control risk We will need to obtain more evidence Evidence is obtained regarding the assertion of Existence However, no evidence is obtained for the assertion of Rights Obligations since inspecting a physical asset doesn't prove ownership The fact that some forklifts were missing unique asset numbers is a failure of I C which would increase our assessment of control risk We will need to obtain more evidence Inspecting a physical asset provides evidence for the assertions of Existence and Rights Obligations The fact that some forklifts were missing unique asset numbers is a reason for the client to switch to using serial numbers in the future No additional work is needed Evidence is obtained regarding the assertion of Existence However, no evidence is obtained for the assertion of Rights Obligations since inspecting a physical asset doesn't prove ownership The fact that some forklifts were missing unique asset numbers is a failure of I C which would decrease our assessment of control risk We will need to obtain more evidence Evidence is obtained regarding the assertion of Existence However, no evidence is obtained for the assertion of Rights Obligations since inspecting a physical asset doesn't prove ownership

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Dominic went to the warehouse to inspect a sample of 8 forklifts (chosen using unique asset numbers assigned to all assets by the client) from

Dominic went to the warehouse to inspect a sample of 8 forklifts (chosen using unique asset numbers assigned to all assets by the client) from the 40 recorded in the ending balance of PP&E. Dominic documented the following, "I was able to locate the 8 forklifts that I went to inspect. I had to use the serial numbers to identify some of the forklifts since some of the unique asset numbers were missing. Based on my procedures, I have some evidence re: the assertions of Existence and Rights & Obligations for the balance of forklifts at year end. The client should switch to identifying forklifts using serial numbers since unique asset numbers are used inconsistently." What would be your feedback to Dominic?

Question 50 options:

	The fact that some forklifts were missing unique asset numbers is a failure of I/C which would increase our assessment of control risk. We will need to obtain more evidence. Evidence is obtained regarding the assertion of Existence. However, no evidence is obtained for the assertion of Rights & Obligations since inspecting a physical asset doesn't prove ownership.
	The fact that some forklifts were missing unique asset numbers is a failure of I/C which would increase our assessment of control risk. We will need to obtain more evidence. Inspecting a physical asset provides evidence for the assertions of Existence and Rights & Obligations.
	The fact that some forklifts were missing unique asset numbers is a reason for the client to switch to using serial numbers in the future. No additional work is needed. Evidence is obtained regarding the assertion of Existence. However, no evidence is obtained for the assertion of Rights & Obligations since inspecting a physical asset doesn't prove ownership.
	The fact that some forklifts were missing unique asset numbers is a failure of I/C which would decrease our assessment of control risk. We will need to obtain more evidence. Evidence is obtained regarding the assertion of Existence. However, no evidence is obtained for the assertion of Rights & Obligations since inspecting a physical asset doesn't prove ownership.