This preview shows page 1. Sign up to view the full content.
Unformatted text preview: working paper analysis and includes tracing of entries through the journals to the original documents. 11) Yes, it is adequate proof of ownership 13) The physical inspection may be limited to major units acquired during the year or may be extended to include tests of older equipment as well. If a complete inventory is needed, observation is required. 18) Auditors are to make a decision on the estimate of the useful lives of assets and then assess a depreciation method to it. 20) Auditors are to examine lease agreements to determine whether the accounting for the assets involved is proper. For example capital leases that are recognized as operating leases....
View Full Document
This note was uploaded on 04/23/2008 for the course ACCOUNTING 386 taught by Professor Collins during the Spring '08 term at York NE.
- Spring '08