Multiple Choice
Analytical procedures are not widely used in the audit of property, plant, and equipment. Which of the following is not a valid comment about the use of analytical procedures in the audit of PPE?
A) compare the annual depreciation charge with the cost of an asset to approximate the depreciation rate
B) a substantial asset balance variation can be caused by one or a few transactions of which the auditor is likely to already be aware
C) comparison of repairs expense with prior years may indicate capitalisation in error
D) None of the above is invalid.
Correct Answer:
Verified
Correct Answer:
Verified
Q26: Ensuring inventories include all materials, products and
Q27: Specialized inventories may require the assistance of
Q28: Which of these would not cause the
Q29: Describe the audit process for property, plant,
Q30: Ensuring that additions and disposals of property,
Q31: The auditor is concerned that the client
Q33: In the event that the audit client
Q34: The key issue in auditing inventories is
Q35: If the auditor was testing inventory pricing
Q36: When conducting tests of details of transactions