Question

Physical examination

A) is a direct means of verifying that an asset really exists.
B) is sufficient evidence to verify that the existing assets are owned by the client.
C) can be used for both tangible assets and documents.
D) is not generally a reliable type of audit evidence.

Answer 1

Physical examination can be used for both tangible assets and documents to verify their existence.

Step-by-step explanation:

Physical examination can be used for both tangible assets and documents. It is a direct means of verifying that an asset really exists by physically inspecting it.

For example, when conducting a physical examination of a house, you would physically inspect the property to confirm its existence.

Therefore, option C) can be considered as the correct answer.