quizz 14-16 - Equipment acquisitions that are misclassified...

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Equipment acquisitions that are misclassified as maintenance expenses most likely would be detected by a control activity that provides for Choose one answer. a. Segregation of duties of emp b. Independent verification of in c. Investigation of variances wit d. Authorization by the board of Correct Marks for this submission: 1/1. Question 2 Marks: 1 In auditing intangible assets, an auditor most likely would review or recompute amortization and determine whether the amortization period is reasonable in support of management's financial statement assertion of Choose one answer. a. Valuation and allocation b. Existence c. Completeness d. Rights and obligations Correct Marks for this submission: 1/1. Question 3 Marks: 1
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Substantive analytical procedures should not be used in the audit of property, plant, and equipment. Answer: True False Correct Marks for this submission: 1/1. Question 4 Marks: 1 When there are numerous property and equipment transactions during the year, an auditor planning to set control risk at the minimum level usually plans to obtain an understanding of internal control and to perform Choose one answer. a. Tests of controls and exten b. Extensive tests of current c. Tests of controls and limite d. Analytical procedures for p Incorrect Marks for this submission: 0/1. Question 5 Marks: 1 If the ratio of repairs and maintenance expense to property, plant, and equipment is higher than expected, which of the following is a plausible explanation? Choose one answer. a. Routine maintenance maintenance expense
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b. An addition to a buildin c. The company forgot to d. The company purchas Correct Marks for this submission: 1/1. Question 6 Marks: 1 Which of the following best describes the independent auditor's approach to obtaining satisfaction concerning depreciation expense in the income statement? Choose one answer. a. Verifying the mathematical ac expense b. Determining the method for c generally accepted accounting p c. Reconciling the amount of de accounts d. Establishing the reasonablen recomputing the depreciation ex Correct Marks for this submission: 1/1. Question 7 Marks: 1 If the auditor has detected misstatements in prior audits, the assessment of inherent risk for the property management process will usually be set higher. Answer: True False
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Marks for this submission: 1/1. Question 8 Marks: 1 Which of the following explanations might satisfy an auditor who discovers significant debits to an accumulated depreciation account? Choose one answer. a. Several fully depreciated b. Prior years' depreciation c c. A reserve for possible loss d. An asset has been record Correct Marks for this submission: 1/1. Question 9 Marks: 1 The controller of Excello Manufacturing, Inc., wants to use ratio analysis to identify the possible existence of idle equipment or the possibility that equipment has been disposed of without having been written off. Which of the following ratios would best accomplish this objective? Choose one answer.
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This note was uploaded on 05/06/2011 for the course AUDITING 4505 taught by Professor Messier during the Spring '11 term at University of Minnesota Duluth.

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quizz 14-16 - Equipment acquisitions that are misclassified...

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