The auditing procedure that could least likely lead the auditor to find unrecorded property, plant, and equipment disposals is A. Vouching purchase invoices for asset additions. B. Review of voucher for the payment of property taxes. C. Review of miscellaneous income account D. Review of loan agreement for fixed assets used as collateral E. None of them

Q: Which of the following audit procedures is least appropriate for addressing the assertion of…

A: Assertion of Valuation is one of the 7 assertions of Auditing. Under the assertion of valuation, it…

Q: An internal auditor's work would most likely affect the nature, timing, and extent of an independent…

A: It is the responsibility of an Internal Auditor to verify that all of a company's operational…

Q: 2. Which of the following statement is true? a. Existence and valuation assertions related to…

A: Existence and valuation assertions related to long-lived assets are most relevant assertions because…

Q: Which of the following accounts would most likely be audited in connection with a related…

A: A balance sheet is a budget summary that reports an organization's benefits, liabilities and…

Q: MOST likely to be performed before the balance sheet date? a. Determine the date of the Letter of…

A: Auditing is independent examination of financial statements to express an opinion on the financial…

Q: inherent risk

A: Inherent risk is the risk of errors or frauds that may occur irrespective of the operation of…

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: Why are the confirmation of payables is not a required audit procedure as it is with receivables?

A: The main objective of auditors is to conduct a thorough verification of the financial statements and…

Q: Which of the following types of audit evidence provides the least assurance of reliability?

A: Answer:   Option B

Q: If an asset that is not fully depreciated is sold or disposed, but the fixed asset records are not…

A: Fixed Asset: The asset used by company for more than one year is known as fixed asset. Fixed asset…

Q: Discuss the implications of a misstated useful life of a category of capital equipment. What steps…

A: Prior period errors are the errors or omissions or misstatements that occur in one or more previous…

Q: An acquisition of a fixed-asset repair by a construction company isrecorded on the wrong date. Which…

A: The overall audit objective and specific audit objectives vary from audit, depending on the…

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: 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: Property. Plant and Equipment (PPE) are the assets that represent a material portion of the total…

A: Property. Plant and Equipment (PPE) characteristics include: Have  physical substance Acquired for…

Q: Which one of the following disclousures is required by generally accepted accounting principle? a.…

A: The correct option is B. Balances of major classes of depreciable assets, by nature or function.

Q: An auditor's primary substantive procedures for investments typically include evaluating the…

A: In performing the substantive audit procedures, auditor needs to address the various assertions of…

Q: In performing substantive procedures for a review of Rental Revenue from Land, Buildings, and…

A: Substantive procedures are those tasks that the auditor conducts to diagnose material…

Q: Standby equipment held for use in the event of a breakdown of regular equipment is reported as…

A: Introduction:- Fixed Asset are tangible nature, which are used in company for daily operation. Plant…

Q: What audit procedures are most likely to be used to verify accountsreceivable written off as…

A: Audit procedure:   Audit procedures are the processes, techniques, and methods that auditors perform…

Q: An auditor's primary substantive procedures for investments typically include impairment testing.…

A: The deployment of cash for the purpose of earning interest, dividends, or capital appreciation is…

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.