The following program has been prepared for the audit of accruedreal estate taxes of a client that pays taxes on 25 different pieces of property, some ofwhich have been acquired in the current year:1. Obtain a schedule of accrued taxes from the client and tie the total to the generalledger.2. Compare the charges for annual tax payments with property tax assessment bills.3. Recompute accrued/prepaid amounts for all bills on the basis of the portion of theyear expired.a. State the purpose of each procedure.b. Evaluate the adequacy of the audit program
The following program has been prepared for the audit of accruedreal estate taxes of a client that pays taxes on 25 different pieces of property, some ofwhich have been acquired in the current year:1. Obtain a schedule of accrued taxes from the client and tie the total to the generalledger.2. Compare the charges for annual tax payments with property tax assessment bills.3. Recompute accrued/prepaid amounts for all bills on the basis of the portion of theyear expired.a. State the purpose of each procedure.b. Evaluate the adequacy of the audit program
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following program has been prepared for the audit of accrued
real estate taxes of a client that pays taxes on 25 different pieces of property, some of
which have been acquired in the current year:
1. Obtain a schedule of accrued taxes from the client and tie the total to the general
ledger.
2. Compare the charges for annual tax payments with property tax assessment bills.
3. Recompute accrued/prepaid amounts for all bills on the basis of the portion of the
year expired.
a. State the purpose of each procedure.
b. Evaluate the adequacy of the audit program
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