Exam 12: Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Natural resource companies cannot reassess the amount of reserves even if more information becomes available during the course of mining,harvesting,or extracting resources.

(True/False)

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Question 41

Which statement is true?

(Multiple Choice)

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Question 42

Which of the following is not a typical internal control over long-lived assets?

(Multiple Choice)

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Question 43

A client has implemented a policy requiring the establishment and enforcement of property management training for all personnel involved in the use,stewardship,and management of equipment.Which of the following is not a test that could be used in testing the control?

(Multiple Choice)

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Question 44

The FASB has set a hierarchy of inputs to consider in assessing fair value.Which of the following relates to Level 3?

(Multiple Choice)

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Question 45

The auditor would most likely review the depreciation policy and test depreciation calculations to test the valuation of long-lived assets.

(True/False)

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Question 46

The auditor's procedures should include a determination of the reasonableness of management's estimate of useful lives of tangible assets.

(True/False)

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Question 47

The obsolescence of long-lived assets is an inherent risk that should be considered by the auditor.

(True/False)

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Question 48

If control deficiencies related to long-lived assets are identified,the auditor will automatically assess those deficiencies as significant deficiencies.

(True/False)

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Question 49

When an organization disposes of a long-lived asset,it should determine and record the gain or loss on the disposal of the asset.

(True/False)

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Question 50

Which of the following assertions are usually the two most relevant assertions related to long-lived assets?

(Multiple Choice)

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Question 51

If a company has only a few long-lived assets of relatively high value,the most efficient approach for an auditor would be to use tests of details for obtaining evidence.

(True/False)

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Question 52

In a tour of a client's manufacturing facility,the auditor is most likely attempting to satisfy which of the following management assertions related to long-lived assets?

(Multiple Choice)

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Question 53

Which of the following is not a typical internal control over intangible assets?

(Multiple Choice)

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Question 54

If the auditor is testing long-lived asset account balances to see if they include all relevant transactions that have taken place during the period,what is the primary assertion being tested?

(Multiple Choice)

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Question 55

The auditor would be most likely to request a schedule of repairs and maintenance expense to test the existence of long-lived assets.

(True/False)

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Question 56

If unusual or unexpected relationships related to long-lived assets are identified during planning analytical procedures,the planned audit procedures (tests of controls and substantive procedures)would be adjusted to address the risk of material misstatement.

(True/False)

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(34)

Question 57

Because of conservatism considerations,auditors should allow a client to overestimate its reserve for restructuring.

(True/False)

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(34)

Question 58

If the auditor is testing the reasonableness of depreciation expense for the year,which assertion is being tested?

(Multiple Choice)

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Question 59

Which of the following controls related to management's asset impairment judgments does the auditor need to understand?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 116

Natural resource companies cannot reassess the amount of reserves even if more information becomes available during the course of mining,harvesting,or extracting resources.

Which statement is true?

Which of the following is not a typical internal control over long-lived assets?

A client has implemented a policy requiring the establishment and enforcement of property management training for all personnel involved in the use,stewardship,and management of equipment.Which of the following is not a test that could be used in testing the control?

The FASB has set a hierarchy of inputs to consider in assessing fair value.Which of the following relates to Level 3?

The auditor would most likely review the depreciation policy and test depreciation calculations to test the valuation of long-lived assets.

The auditor's procedures should include a determination of the reasonableness of management's estimate of useful lives of tangible assets.

The obsolescence of long-lived assets is an inherent risk that should be considered by the auditor.

If control deficiencies related to long-lived assets are identified,the auditor will automatically assess those deficiencies as significant deficiencies.

When an organization disposes of a long-lived asset,it should determine and record the gain or loss on the disposal of the asset.

Which of the following assertions are usually the two most relevant assertions related to long-lived assets?

If a company has only a few long-lived assets of relatively high value,the most efficient approach for an auditor would be to use tests of details for obtaining evidence.

In a tour of a client's manufacturing facility,the auditor is most likely attempting to satisfy which of the following management assertions related to long-lived assets?

Which of the following is not a typical internal control over intangible assets?

If the auditor is testing long-lived asset account balances to see if they include all relevant transactions that have taken place during the period,what is the primary assertion being tested?

The auditor would be most likely to request a schedule of repairs and maintenance expense to test the existence of long-lived assets.

If unusual or unexpected relationships related to long-lived assets are identified during planning analytical procedures,the planned audit procedures (tests of controls and substantive procedures)would be adjusted to address the risk of material misstatement.

Because of conservatism considerations,auditors should allow a client to overestimate its reserve for restructuring.

If the auditor is testing the reasonableness of depreciation expense for the year,which assertion is being tested?

Which of the following controls related to management's asset impairment judgments does the auditor need to understand?

Quality Auditing: Why It Matters

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditor

Professional Legal Liability

Professional Auditing Standards and the Audit Opinion Formulation Process

Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Term Liabilities and Stockholders Equity Transactions

Completing a Quality Audit

Audit Reports

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