Questions from Auditing and Assurance

Q: When performing attributes sampling, may auditors include several types of attributes

When performing attributes sampling, may auditors include several types of attributes in their definition of a deviation? Explain.

Q: Explain how the existence of lease agreements may result in understated plant

Explain how the existence of lease agreements may result in understated plant and equipment.

Q: Suggest several comparisons to be made as part of the auditors’ analytical

Suggest several comparisons to be made as part of the auditors’ analytical procedures for a. Plant and Equipment. b. Depreciation.

Q: What are the objectives of establishing internal control over plant and equipment

What are the objectives of establishing internal control over plant and equipment?

Q: Identify at least three elements of strong internal control over property,

Identify at least three elements of strong internal control over property, plant, and equipment.

Q: Explain the use of a system of authorizations for additions to plant

Explain the use of a system of authorizations for additions to plant and equipment.

Q: Moultrie Company discovered recently that a number of its property and equipment

Moultrie Company discovered recently that a number of its property and equipment assets had been retired from use several years ago without any entries being made in the accounting records. The compan...

Q: Does a failure to record the retirement of machinery affect net income

Does a failure to record the retirement of machinery affect net income? Explain.

Q: The auditors’ verification of current assets such as cash, securities,

The auditors’ verification of current assets such as cash, securities, and inventories emphasizes observation, inspection, and confirmation to determine the physical existence of these assets. Should...

Q: You are making your first audit of Clarke Manufacturing Company. The

You are making your first audit of Clarke Manufacturing Company. The Plant and Equipment account represents a very substantial portion of the total assets. What verification, if any, will you make of...