7. Which of the following analyses might an auditor perform as part ofpreliminary analytical procedures?a. Develop an overall estimate of depreciation expense.b. Compare capital expenditores with the client's capital budget.c. Perform a trend analysis of the ratio of depreciation expense to totaldepreciable long-lived tangible assets.d. All of the above could be performed as part of preliminary analyticalprocedures.

Answer- Perform a trend analysis of the ratio of depreciation expense to total depreciable long…

Answered: 7. Which of the following analyses…

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.
Explain the importance of an accurate valuation of inventories and list steps for the verification of inventories.
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.
question 3 (this is a auditing question) Which of the following services is appropriate for an independent examination of a cashflow forecast? Group of answer choices a) Both are appropriate. b) A review c) An external audit d) Neither service is appropriate
Subject: Quantitative surveying and estimation. Q:Describe the following terms: Bid Security, Performance Security, Debatable Agency, Salvage Value, Depreciation
explain. If, after obtaining an initial understanding of a client's internal control, the auditor wishes to further reduce the assessed level of control risk relating to plant asset transactions, the auditor should next Make extensive substantive tests of plant asset balances. Establish the physical existence of current year additions. Complete the plant asset section of the internal accounting control questionnaire. Further test those internal control procedures relating to processing and recording plant asset transactions.
In performing risk assessment procedures for investments, an auditor may inquire of the client personnel which of the following questions? a. Are investment records periodically reconciled to actual listing of investments (i.e., per count or investment custodian statement)? b. Is there independent review of investments measured at fair value based on market valuation? c. Is investment income independently recalculated? d. All of the choices
Describe a number of audit processes the auditor may use to evaluate whether all of the money received was properly documented..
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.
What is pre-ranking approach with annual rebalancing to the testing of an asset pricing model?
Three common types of attestation services are:- A) audits of historical financial statements, reviews of historical financial statements, and audits of internal control over financial reporting.B) audits of historical financial information, verifications of historical financial information, and attestations regarding internal controls. C) reviews of historical financial information, verifications of future financial information, and attestations regarding internal controls.D) audits of historical financial information, reviews of controls related to investments, and verifications of historical financial information

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