Exam 19: Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

When auditing disposals of property, plant, and equipment, the search for unrecorded disposals is essential. State the four audit procedures frequently used for verifying disposals.

Explain the audit objective allocation and why it is important to have accurate allocation within the financial statements, particularly for property, plant, and equipment

In the audit of accrued property taxes, the two most important balance-related audit objectives are completeness and accuracy.

In auditing depreciation expense one the auditors concerns is on determining that the client's calculations are correct. In determining that the auditor must weigh which four considerations?

The test of details of balances procedure which requires a "recalculation of investment credit" satisfies the audit objective of:

Tests of the cutoff objective for prepaid insurance is normally not performed by auditors.

The balance in the property tax expense account is most similar to:

Ordinarily, if you are auditing a continuing client, it is unnecessary to test the accuracy objective or the classification objective for fixed assets acquired in prior years.

Methods used to determine if there are legal encumbrances related to fixed assets include all but which of the following?

The auditor normally does not need to test the accuracy or classification of fixed assets recorded in prior periods if they are the continuing auditor because:

You are auditing Manufacturing Company and testing the audit related objective of completeness for the equipment accounts. Which of the following audit procedures is most likely to achieve your objective?

Which of the following audit tests both have the effect of simultaneously verifying balance sheet and income statement accounts?

The auditor's tests for proper cutoff of current year acquisitions of property, plant, and equipment are usually done as part of accounts payable cutoff tests.

When auditors verify accrued property taxes two audit objectives are especially significant. These are:

Which balance-related audit objective is not relevant to an audit of prepaid expenses?

Explain the allocation audit objective and explain why it is important to have accurate allocation within the financial statements, in relationship to Property, Plant, and Equipment

Inadequate controls and misstatements discovered through tests of controls and substantive tests of transactions are an indication of the likelihood of misstatements in:

Which of the following tests are typically not necessary when auditing a client's schedule of recorded disposals?

Which of the following accounts is not associated with the acquisition and payment cycle?

Insurance expense for the period is a function of which of the following?