a client currently using straight-line method for all depreciable assets acquires a new class of depreciable assets to initiate a new product line and begins to depreciate these assets on an accelerated basis, the auditor should A. Add a separate explanatory paragraph to the report B. Express an adverse opinion C. Express the opinion subject to the effect of new depreciation method D. Express thee opinion with no modification for the accounting change

Q: Minimum benefit from independent internal verification is obtained when: Select one: a.…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: In evaluating the fair value of net assets in an acquisition the auditor has to gather independent…

A: Audit Evidence -The data that the business's auditor obtains from the business is known as audit…

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: 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: Which of the following is not a characteristic of non-counterbalancing error? Group of answer…

A: Non counter balancing errors are those errors which will not be automatically corrected in the next…

Q: Which of the following best describes the auditors' approach to the audit of the ending balance of…

A: The audit seems to be a thorough and comprehensive review of the company's account books. Auditing…

Q: Which of the following statements is most likely to be included in an attorney letter?a. “Certain…

A:

Q: Assume an auditor wishes to execute a meaningful analytical technique to offer audit evidence to…

A: Introduction:- Interest is a fixed expenditure payment to the loan issuer by the company on fixed…

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: 8. An auditor should be aware of subsequent event that provide evidence concerning conditions that…

A: There are two question and both are separate, as per the guidelines first question has been answered…

Q: Statement 1: Common to future purchase commitments is the fact that they should be recorded as…

A: Audit refers to inspection or examination of the financial statements of the company through auditor…

Q: An adjusting event is one that: Select one alternative: occurs after reporting date and…

A: Adjusting events are those events which provide evidence of the conditions existing at the reporting…

Q: Based on the information in scenario C, classify the information (1-8) according to the elements of…

A: Here given the details of elements of Auditing findings which are involved with the each and every…

Q: 10. Which of the following situations would lead an auditor to test controls over long-lived assets?…

A: Introduction:- Long live assets means, Which are are look forward to contribute future economic…

Q: kingbird, inc.had the following  transactions. 1.sold land(cost$8320) for $10400.2. Issued  common…

A: Journal: Recording of a business transactions in a chronological order. First step in the…

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: 1 are an au it senior ha

A: Contingent means an event that may occure in future.…

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: Select the best answer for the question. 5. Which of the following statements about the Accumulated…

A: Accumulated Depreciation account contains the total depreciation charged on the asset till date. Due…

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: Which of the following is most likely to be presumed to represent fraud risk on an audit?

A: The correct answer is: (D) improper revenue recognition. There are a few different types of fraud…

Q: Suppose an auditor wants to perform a substantive analytical procedure to provide audit evidence to…

A: Interest expense can be referred to as the amount that is paid or payable on the amount borrowed…

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: When auditing the existence assertion for an asset, auditors proceed from thea. Financial statement…

A: Definition: Existence assertion: Existence assertion is a management assertion where it is asserted…

Q: When auditors wish to issue an unmodified opinion but highlight that the entity changedits method of…

A:

Q: An auditor must identify the relevant assertions about each significant financial statement account…

A: a.

Q: Which of the following procedures is usually performed by the auditor to determine if obsolete…

A: Obsolete inventory is an inventory that gets obsolete and remains unserviceable and loses its…

Q: Unqualified opinion with an explanatory paragraph. O Adverse opinion O Qualified opinion O…

A: Depreciation is the decrease in the value of asset with the passage of time due to wear and tear.

Q: Rayan Company, a CPA firm, conducted an audit for the 2020 financial statements of Tia Corporation.…

A: According to the accounting rules, whenever there is any expenditure incurred on repairs and…

Q: ZZZ best fraud case, auditors obtained third party confirmation to support the contract, reviewed…

A: Audit procedure: Auditor applies procedures to perform audit engagement. These procedures include…

Q: (7) ( ) When the auditor want to know the change of cost-allocated method of several products, which…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: According to auditing standards, financial statements presented on a special-purpose framework…

A: According to auditing standards, financial statements presented on a special-purpose framework…

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: materiality level

A: Option a is wrong because the auditor can not measure the amount of undetected misstatements. Option…

Q: The auditor may note that annual depreciation expense is too low for a class of assetsby noting(1)…

A: Depreciation is the allocation of cost of asset over the useful life of the asset.

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.