12. When auditing' intangible assets, the auditor would likely recomputedamortization and determine whether management's recorded amount isreasonable. When performing this procedure which assertion is theauditor primarily gathering evidence for?a. Completenessb. Existencec. Valuationd. Rights and obligations.

Recomputation of amortization and assessing management's recorded amount is reasonable is performing…

Answered: 12. When auditing' intangible assets,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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13. As part of auditing equipment, the auditor will inspect new equipment additions selected from the client's property ledger. Thẻ procedure will provide evidence about which of the following assertions? a. Completeness b. Existence c. Valuation d. Rights and oblígations.
Q3. Auditing involves the following except___ a. Systematic process b. Objectively obtaining evidence c. Assertions and established criteria d. Investment decisions
16. In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions? Group of answer choices Are depreciation policies in accordance with applicable financial reporting framework? Are disposals of property, plant and equipment properly authorized, removed from records including depreciation, and recorded in correct accounting period? Are all property, plant and equipment purchases, including finance leases, properly authorized, recorded in accordance with the capitalization threshold (e.g., P10,000) and in correct accounting period? All of the choices.
An auditor's primary substantive procedures for investments typically include impairment testing. Which of the following assertion(s) is(are) addressed by the audit procedure previously mentioned? * A. III only B. IV only C. III and IV D. IV, V and VIII
Assume that the client’s internal controls over the recording and classifying of fixed asset additions are considered weak because the individual responsible for recording new acquisitions has inadequate technical training and limited experience in accounting. How will this situation affect the evidence you should accumulate in auditing fixed assets as compared with another audit in which the controls are excellent? Be as specific as possible.
In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions? a. Is depreciation calculation and recording automated? b. Is there periodic physical count and tagging of property, plant and equipment? Is the result of the count reconciled to ledgers and general ledgers? c. Both a and b. d. Neither a nor b.
What type of audit objectively obtains and evaluates evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria? This type also communicates the results to interested users.
Identify important internal control activitiespresent in a properly designed system tomitigate the risk of material misstatementsfor each relevant assertion in the revenueand collection cycle.
Give examples and practice on the situation of auditing fixed assets at the client as follows (in the situation, the information is required): - Information on the type of entity and the accounting period; - Information on internal control of tangible fixed assets and two (2) weaknesses occurring in the management and accounting of tangible fixed assets at the entity. You must mention 2 control procedures to prevent the above weakness.

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