Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process
Section: Chapter Questions
Problem 39RQSC
Related questions
Question
Acquisition and retirements
Capital lease
Goodwill
Net income
Ownership
Property tax
Repairs and maintenance
Retirement work order
Revenue
Subsidiary ledger
Working papers
![Select the necessary words from the list of possibilities to complete the following statements.
Statements
Ans
1. The plant and equipment budget is designed to control
of property items.
A company may not actually own property recorded as an asset, instead the company may have rights to the
2.
asset under the terms of a
A December 30 acquisition of a new plant asset was recorded after year-end rather than prior to year-end.
3.
Such an error does not usually result in a significant misstatement of
A dollar minimum ordinarily should be established to be used by accounting personnel for distinguishing
4.
between capital and
expenditures.
In the auditors' first examination of a new client that has changed auditors, the beginning balances of property,
5.
plant, and equipment accounts may be substantiated by referring to the predecessor auditors'](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb9b3ab2a-f4ac-4d16-9a30-183b5e5c454b%2Fa61aed00-730e-4e3f-9325-88ac85641be7%2Fyj5yhcy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Select the necessary words from the list of possibilities to complete the following statements.
Statements
Ans
1. The plant and equipment budget is designed to control
of property items.
A company may not actually own property recorded as an asset, instead the company may have rights to the
2.
asset under the terms of a
A December 30 acquisition of a new plant asset was recorded after year-end rather than prior to year-end.
3.
Such an error does not usually result in a significant misstatement of
A dollar minimum ordinarily should be established to be used by accounting personnel for distinguishing
4.
between capital and
expenditures.
In the auditors' first examination of a new client that has changed auditors, the beginning balances of property,
5.
plant, and equipment accounts may be substantiated by referring to the predecessor auditors'
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Auditing: A Risk Based-Approach (MindTap Course L…](https://www.bartleby.com/isbn_cover_images/9781337619455/9781337619455_smallCoverImage.gif)
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Auditing: A Risk Based-Approach (MindTap Course L…](https://www.bartleby.com/isbn_cover_images/9781337619455/9781337619455_smallCoverImage.gif)
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning