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Commerce · Q285

Auditing

Graduate and Post Graduate · Commerce · question 285

Q285

When auditing prepaid insurance, an auditor discovers that the insurance policy bond on building is not available for inspection. This may indicate:

A.
No insurance has been undertaken for building
B.
Lien on building
Answer
C.
Insurance premium has not been paid
D.
Insurance premium paid but not recorded

Answer: Option B

Solution

Answer: Option B
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