Chapter 5, Problem 86RSCQ

a.

To determine

Introduction: The procedures performed by an auditor to procure accuracy and reliability about the management’s assertion is known as substantive analytical procedures. Substantive analytical procedures are performed by an auditor based on their opinion about the effectiveness of company’s internal control

To define: The substantive audit procedures that can be used to identify whether the lease equipment was capitalizedin actual during the year.

b.

To determine

Introduction:The procedures performed by an auditor to procure accuracy and reliability about the management’s assertion is known as substantive analytical procedures. Substantive analytical procedures are performed by an auditor based on their opinion about the effectiveness of company’s internal control.

The substantive audit procedure to check whether the equipment account was properly recorded during the year.

c.

To determine

Introduction: The procedures performed by an auditor to procure accuracy and reliability about the management’s assertion is known as substantive analytical procedures. Substantive analytical procedures are performed by an auditor based on their opinion about the effectiveness of the company’s internal control.

To define: The information needed by the auditor to ensure that the construction equipment-net of depreciation is properly recorded in the balance sheet.

d.

To determine

Introduction: The procedures performed by an auditor to procure accuracy and reliability about the management’s assertion is known as substantive analytical procedures. Substantive analytical procedures are performed by an auditor based on their opinion about the effectiveness of the company’s internal control.

If the client has assigned the appropriate useful life of an asset and its depreciation charged.