1. Why is it necessary to examine the lapsing schedule for additions and disposals of property, plant and equipment? 2. How do auditors test the reasonableness of the estimates used in relation to PPE (e.g. depreciation method, useful life, residual value?) 3. What are the procedures involved in determining the reasonableness of the depreciation expense during the year?

Q: An intangible asset may be recorded:  Select one: a. . at the cost of the asset, which must exclude…

A: Solution: An intangible asset may be recorded, "if acquired from an external party at a cost."

Q: In auditing depreciation expense, what major considerationsshould the auditor keep in mind? Explain…

A:

Q: Explain the steps required to correct an error in accounting for property, plant, and equipment and…

A: Once an accounting error is found, it should be properly rectified. The correction of accounting…

Q: Determine the following as a result of your audit: 16. How much is the cost of Land disclosed in its…

A: Here given the multi sub part question as per guidelines we will solve for first three sub part…

Q: In performing risk assessment procedures for property, plant and equipment, an auditor may inquire…

A: Firstly let us understand what are risk assessment procedures. Risk assessment is the assessment of…

Q: 2. Which of the following statement is true? a. Existence and valuation assertions related to…

A: Existence and valuation assertions related to long-lived assets are most relevant assertions because…

Q: The auditing procedure that could least likely lead the auditor to find unrecorded property, plant,…

A: Audit: An audit is a formal verification of an organization's account that is usually conducted by…

Q: In performing risk assessment procedures for property, plant and equipment, an auditor may inquire…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: valuation assertion for property, plant,

A: Option B is wrong because by touring the hotel for unused to equipment will provide data only…

Q: The auditor should see to it that fully depreciated property, plant, and equipment still in use must…

A: As long as a fully depreciated plant asset is still useful to the firm, the asset and its…

Q: Can the selection of a depreciation method affect a company’s asset replacement policy (i.e., the…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: Explain why the emphasis in auditing property, plant, and equipment is on the current period…

A: The reason for the emphasis in auditing property, plant, and equipment is on the current period…

Q: Describe common substantive procedures used to audit a client’s property, plant, and equipment. How…

A: The auditor’s main objective is to form an opinion on the financial statement of the company. The…

Q: The most appropriate reason for an increase in depreciation expense is that a. Depreciation for…

A: Introduction: - Depreciation is a non-cash expense. Depreciation is charged on fixed asset over a…

Q: How will the approach for verifying repair expense differfrom that used to audit depreciation…

A: Auditing:   In auditing, auditors verify the correctness and fair presentation of financial…

Q: In performing risk assessment procedures for property, plant and equipment, an auditor may inquire…

A: Lets understand the basics. Risk assessment procedure in audit is done by the audit to obtain the…

Q: Using the tax rules for abandoned property, recommend the tax treatment of any potential losses…

A: Audit - To ensure that all departments are using a documented system of documenting transactions, an…

Q: Plant, property and equipment and limited life identifiable intangible assets are recorded at cost…

A: Depreciation or amortization means fall in value of assets because of use of assets , passage of…

Q: The auditor assigned to audit the property, plant and equipment requested a schedule of property…

A: 1. Completeness assertions : This assertion asserts that  all the transactions are recorded in…

Q: In performing risk assessment procedures for property, plant and equipment, an auditor may inquire…

A: C. All of the choices

Q: the heightened risk of material misstatement. d. The auditor would perform all of the above…

A: Auditing is the detailed process of checking and verifying books of accounts and assets of the…

Q: Explain the appropriate treatment required when an error in accounting for property, plant, and…

A: Definition:   Assets: These are the resources owned and controlled by business and used to produce…

Q: Which of the following best describes the independent auditor's approach to obtaining satisfaction…

A: Business organizations are required to charge the depreciation expense so that the assets are shown…

Q: How do businesses account for depletion of natural resources? What is the relevant AASB regarding…

A: SOLUTION- NATIONAL RESOURCES (NR) ARE ASSETS IN THE FORM OF INVENTORIES FOR COMPANIES WHOSE MAIN…

Q: AF calculates depreciation of plant and equipment on a straight-line basis, over theuseful life of…

A: Depreciation:   It is the reduction in the value of asset due to factors like normal usage and…

Q: Explain why the emphasis in auditing property, plant, and equipment is on the current period…

A: Balances carry forward means to forward the carried balance of any account to the next fiscal year.…

Q: What assertions found in PP&E, investments, and intangibles accounts are of interest to an…

A: Management assertion refers to the claim made by the management assuring about the accuracy of…

Q: What is the purpose of teviewing repairs and maintenance expense accounts in audit of non-current…

A: While performing an Audit, various assertions are considered, namely: Accuracy  Completeness…

Q: 6. Which of the. following techniques overstate long-lived assets? a. Overvalue existing assets. b.…

A: The answer is given below:         Note: Answering the first question as there are multiple…

Q: nce that there are no significant amounts of unrecorded retirements of property, plant and…

A: Audit evidence refers to the information obtained by auditors while performing audit procedures to…

Q: In performing substantive procedures for a review of Rental Revenue from Land, Buildings, and…

A: Substantive procedures are those tasks that the auditor conducts to diagnose material…

Q: 1) The auditors analyze repairs and maintenance expense to: a)determine that plant & equipment…

A: 1) The auditors analyze repairs and maintenance expense to determine that all maintenance items are…

Q: What are the major differences between the audit of prepaid expensesand other asset accounts such as…

A: Given: The difference between the prepaid expenses audits and the other assets accounts.

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.