Yes, that is correct!

This item found on my way to arrest,
Will help me through all I detest.
Hidden away, inside of this chest,
I think that, surely, this must be the best!

It is found not long before Tifa's near execution...
"All I detest" means staus ailments
It is hidden away, and it is found in a chest (SPOILER)NO WAY!:Eek:
You could probably say that it's the best accessory in the game.

Your turn Karifean, and I have a much better riddle all ready for next time...