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Unformatted text preview: examines whether or not the major equipment exist. c) Auditors recalculatio n of bond interest and amortizatio n expense Accuracy- Amount of bond interest and amortization expense is correctly recorded. Recalculation The evidence is highly reliable because it meets the objective of accuracy. d) Review all significant past-due accounts Valuation and Allocation- Allowance for Inquiry Inquiring with the client’s personnel may be associated receivable with the credit manager to determine whether the client’s allowance for doubtful accounts is adequate. doubtful accounts must be adequate/appropriate and any valuation adjustments are recorded. with some bias, hence inquiring more than one person is more effective, therefore this evidence has a low quality....
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- Spring '11
- Existence, Financial audit