In auditing agricultural activities, which among the following is an incorrect application of PAS 41? *   A. Breeding pigs accounted for as biological assets     B. Picked oranges accounted for as biological assets     C. Mango trees with ripe mangoes accounted for as property, plant, and Equipment     D. Grapes ready for harvest next week accounted as biological assets

Q: IDENTIFY THE EFFECT OF THE FOLLOWING TRANSACTION TO THE RISK OF MATERIAL MISSTATEMENT TO FINANCIAL…

A: Risk of material misstatement can defined as "the risk that the financial statements are materially…

Q: Doowow Chemical Company determines that an extruder machine used in its operations has suffered an…

A: The objective of the question is to identify the correct accounting entry to record the impairment…

Q: Explain the steps required to correct an error in accounting for property, plant, and equipment and…

A: Once an accounting error is found, it should be properly rectified. The correction of accounting…

Q: Bronson Co.`s accounting department is implementing a new general ledger software package. The…

A: Operating cycle is the time taken to buy raw material, complete the production process, sell the…

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: Which of the following sets represents a false relationship regarding the accounting for the cost of…

A: Intangibles are those assets which do not have any physical existence, only their value can be felt…

Q: For entities that report using IFRS, which of the following is an example of agricultural produce?…

A: Agriculture Produce- Harvested Product from Biological asset

Q: An example of a correction of an error in previously issued financial statements is a change…

A: A correction of an error in financial reporting refers to the rectification of a material mistake or…

Q: With reference to IAS 16 (Property, Plant and Equipment), discuss the differences between “the cost…

A: IAS 16 relates to the accounting for property, plant, and equipment unless another standard requires…

Q: Revising an estimate of the useful life or salvage value of a plant asset is referred to as a change…

A: An accounting estimate is the estimated value using which the adjusting entries are recorded.…

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: Measurement is the process of assigning numbers to objects such inventories or plant assets and o…

A: The process of assigning numbers or labels to any person , object or event is called measurements.

Q: evising an estimate of the useful life or salvage value of a plant asset is referred to as a change…

A: Business Environment is Very Complex Sometimes Assets Life and Salvage Changes and that change is…

Q: Explain the steps of depreciation analysis with the help of a numerical example. (Note: each student…

A: Solution- In accounting terms, depreciation is defined as the reduction of recorded cost of a fixed…

Q: All of the following are key steps related to accounting for impairments of long-term operating…

A: The question is asking to identify the step that is not typically involved in the process of…

Q: An asset manager's responsibilities would NOT include decisions pertaining to Group of answer…

A: Assets- The term "asset" refers to all of a company's resources that it anticipates in creating…

Q: Before testing property, plant, and equipment (PPE) and finite-life intangible (FLI) assets,…

A: The objective of the question is to understand the process a firm follows in assessing Property,…

Q: The following are typical questions that might appear on an internal control questionnaire relating…

A: The purpose for establishing a dollar amount minimum for expenditures to be capitalized is to bring…

Q: In computing depreciation, salvage value is

A: Answer:   Option d

Q: Which of the following audit procedures uses “a purchase transaction” as the sampling unit?   A.…

A: Audit Procedures for Purchase Transaction The proper audit procedures which are needed in the…

Q: 57. All of the following would appear on a written appraisal report EXCEPT the A. date of the value…

A: As per our guidelines, in case of multiple questions, we can only solve the first question. In case…

Q: Explain the appropriate treatment required when an error in accounting for property, plant, and…

A: Definition:   Assets: These are the resources owned and controlled by business and used to produce…

Q: Which of the following is a test of control relating to purchases? a. None of the options b. Give…

A: Test of controls refers to the audit procedure followed by the auditors while conducting an audit of…

Q: Remodeling and rehabilitation: O Can usually be undertaken by the property manager without…

A: Rehabilitants and remodeling both are a different thing. Rehabilitations consists of renovating…

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: urrent accounting practice in Australia is to initially record property,plant and equipment at:…

A: Historical Concept of Accounting : As per this accounting concept the fixed assets are initially…

Q: Alice Brooks, a professional appraiser, based the value of a subject site on similarities and…

A: Land valuation is the process of estimating the monetary worth of a specific piece of land. It…

Q: Examination of plant equipment and inventory items are examples of documentary evidence. Select…

A: Documentary evidences are those in which the auditors gather documents prepared by an organization…

Q: During the taking of physical inventory, the controller intentionally withheld several inventory…

A: If the auditor had observed the physical inventory count, they would have seen that the controller…

Q: explainthe process of auditing the following transactions/accounts of Real estate companies * Value…

A: "As per the policy of our company, we are allowed to answer only the first three sub-parts in case…

Q: Depletion of a natural resource us typically recorded as  a. Debit to an invenrory account b.…

A: journal entry for depletion expense is -    depletion expense account debit </p><p>…

Q: Explain a possible quantitative research design and sampling technique that can be used for the…

A: The objective of this question is to identify a suitable quantitative research design and sampling…

Q: The following event is referred to as the post-balance sheet event: O A. OB. O C. O D. Any event…

A: An event or transaction that takes place after the financial statements balance sheet date but…

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.