Following are seven audit activities.1 (Click the icon to view the audit activities.)RequirementFor each activity listed above, indicate in which phase of the audit the procedure was likely performed.1 (Click the icon to view the phases of the audit.)Audit activityPhaseа.Examine invoices supporting recorded fixed asset additions.b.Review industry databases to assess the risk of material misstatement in the financial statements.С.Summarize misstatements identified during testing to assess whether the overall financialstatements are fairly stated.

Audit procedures are actions taken by auditors to obtain all relevant information about the quality…

Following are seven audit activities. O (Click the icon to view the audit activities.) Requirement For each activity listed above, indicate in which phase of the audit the procedure was likely performed. O (Click the icon to view the phases of the audit.) Audit activity Phase a. Examine invoices supporting recorded fixed asset additions. b. Review industry databases to assess the risk of material misstatement in the financial statements. C. Summarize misstatements identified during testing to assess whether the overall financial statements are fairly stated.

Following are seven audit activities. O (Click the icon to view the audit activities.) Requirement For each activity listed above, indicate in which phase of the audit the procedure was likely performed. O (Click the icon to view the phases of the audit.) Audit activity Phase a. Examine invoices supporting recorded fixed asset additions. b. Review industry databases to assess the risk of material misstatement in the financial statements. C. Summarize misstatements identified during testing to assess whether the overall financial statements are fairly stated.

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter16: Advanced Topics Concerning Complex Auditing Judgments

Section: Chapter Questions

Problem 17MCQ

See similar textbooks

Similar questions

Please see attached screenshot. Thank you!!!!
Following are seven audit activities.a. Examine invoices supporting recorded fixed asset additions.b. Review industry databases to assess the risk of material misstatement in the financialstatements.c. Summarize misstatements identified during testing to assess whether the overallfinancial statements are fairly stated.d. Test computerized controls over credit approval for sales transactions.e. Send letters to customers confirming outstanding accounts receivable balances.f. Perform analytical procedures comparing the client with similar companies in theindustry to gain an understanding of the client’s business and strategies.g. Compare information on purchases invoices recorded in the acquisitions journalwith information on receiving reports.For each activity listed above, indicate in which phase of the audit the procedure waslikely performed.1. Plan and design an audit approach based on risk assessment procedures (Phase I)2. Perform tests of controls and substantive tests of…
Based on the information in scenario C, classify the information (1-8) according to the elements of an audit finding (criteria, condition,cause, effect and recommendations)
In the audit of the financial statements, to determine the risks of material misstatement when planning the audit of the tangible fixed assets item, what types of information must the auditor collect? List audit procedures (at least 4 procedures) to collect sufficient and appropriate evidence as a basis for confirmation of tangible fixed assets.
a1.Which of the following best describes the auditors’ approach to auditing property, plant and equipment on continuing audit? Multiple Choice A. Perform analytical procedures. B. Substantiating all property, plant & equipment at year end. C. Audit the additions and reductions in property, plant & equipment during the period. D. Take a complete inventory of property, plant & equipment. a2.Which of the following is true about the audit of property, plant & equipment? Multiple Choice A. For the first audit of company, the audit of these accounts may require substantial additional time. B. Because of the materiality of these accounts, they generally require a substantial amount of audit time. C.One of the most difficult assertions to audit for these accounts is existence. D. Confirmation is an important audit procedure for these accounts.
Listed below are several of the auditors’ general objectives in performing substantive procedures on an asset account: Establish the existence of assets. Establish that the company has rights to the assets. Establish the completeness of recorded assets. Verify the cutoff of transactions. Determine the appropriate valuation of the assets. Establish the clerical accuracy of the underlying records. Determine the appropriate financial statement presentation and disclosure of the assets. Required: Indicate the general objective (or objectives) of each of the following audit procedures: a. Observe the client’s physical inventory. b. Locate on the client’s premises a sample of the equipment items listed in the subsidiary plant and equipment ledger. c. Obtain a listing of inventory and reconcile the total to the general ledger. d. Trace a sample of shipping documents to recorded sales transactions. e. Identify related parties. f. Vouch selected purchases of…
Audit firms may have a standardized audit programs for auditing long-lived assets but auditors must still customize the audit program based on the assement of the risk of material misstatement. Why/how?
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.
Please only choose one best answer. Thanks.
The auditor selects a sample of asset disposals and examines the sales documentation evidencing disposal of the equipment and recomputes gain or loss on the disposal. This audit procedure primarily tests which of the following assertions for the equipment account? a. Presentation and disclosure. b. Rights. c. Valuation. d. Existence.
My question is on auditing where I want to know whether the audit evidence is sufficient and appropriate such as oral representation by management, year end suppliers statement and physical inspection of a non current assets
For each of the following misstatements in property, plant, andequipment accounts, state an internal control that the client can implement to preventthe misstatement from occurring and a substantive audit procedure that the auditor canuse to discover the misstatement:1. Computer equipment that is abandoned or traded for replacement equipment isnot removed from the accounting records.2. Depreciation expense for manufacturing operations is charged to administrativeexpenses.3. The asset lives used to depreciate equipment are less than reasonable, expected useful lives.4. Capitalizable assets are routinely expensed as repairs and maintenance, perishabletools, or supplies expense.5. Acquisitions of property are recorded at incorrect amounts.6. A loan against existing equipment is not recorded in the accounting records. Thecash receipts from the loan never reached the company because they were used forthe down payment on a piece of equipment now being used as an operating asset. Theequipment…