Auditors examine invoices for accounts such as repairs and maintenance

Auditors examine invoices for accounts such as

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70.Auditors examine invoices for accounts such asrepairs and maintenance primarily to determinewhether A.expenditures for fixed assets have been recordedin the proper periodB.expenditures have been improperly authorizedC.noncapitalized expenditures have been properlyexpensed635
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D.expenditures that were expensed should havebeen capitalized 71.When auditing contingent liabilities, which of thefollowing procedures would be least effective? 72.When obtaining an evidence regarding litigationagainst a client, the CPA would be least interested indetermining 73.Banaue Company is an affiliate of the audit client andis audited by another firm of auditors. Which of thefollowing is most likely to be used by the auditor toobtain assurance that all guarantees of the affiliate’sindebtedness have been detected? 636
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74.Which of the following subsequent events will beleast likely to result in an adjustment to the financialstatements? A.Culmination of events affecting the realization ofaccounts receivable owned as of the balancesheet date.B.Culmination of events affecting the realization ofinventories owned as of the balance sheet date.C. Material changes in the settlement of liabilitieswhich were estimated as of the balance sheetdate.D. Material changes in the quoted market price oflisted investment securities since the balancesheet date.75.An auditor is concerned with completing variousphases of the examination after the balance sheetdate. This “subsequent period” extends to the dateof the:
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