The engineering department at OMNI Company built a piece of equipment in the company's own shop for use in the company's operations. When looking at the ending balance for the fixed asset account the auditor examined all work orders, purchased materials, labor cost reports, and applied overhead that were capitalized as part of the equipment cost. Which of the following is the ASB assertion most closely related to the auditor's testing? Existence completeness Rights and obligations Valuation
Question 10
The engineering department at OMNI Company built a piece of equipment in the company's own shop for use in the company's operations. When looking at the ending balance for the fixed asset account the auditor examined all work orders, purchased materials, labor cost reports, and applied
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Existence |
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completeness |
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Rights and obligations |
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Valuation |
Question 11
The purpose of an audit strategy is:
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provide a defense against litigation. |
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to gain an understanding of the client. |
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to comply with securities law. |
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to set the scope, timing and direction for auditing each relevant managment assertion |
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