The following are typical questions that might appear on an internal control questionnaire relating to plant and equipment:   Has a dollar minimum been established for expenditures to be capitalized? Are subsidiary ledgers for plant and equipment regularly reconciled with general ledger controlling accounts?   Describe the manner in which each of the above procedures might be tested.

1) The auditors analyze repairs and maintenance expense to: a)determine that plant & equipment accounts are not understated. b)determine that all maintenance items are recorded. c)determine that plant & equipment accounts are not overstated d)determine that maintenance expense amounts are authorized.   2)In auditing valuation of property, plant and equipment when its value is impaired, the auditors should: a)recalculate the depreciation expense on the item. b)recompute the net book value of the item. c)vouch the purchase of the item. d)evaluate the valuation model used for the item.   3)Which of the following best describes why auditors audit leased assets in conjunction with the audit of property, plant & equipment? a)Management may choose to lease assets rather than buy them. b)Leased assets have a higher risk of misstatement. c)Most leased assets should be capitalized.d)Repairs and maintenance expense is affected by leased assets.   4)Which of the following best…

Which activities are performed in a change management audit? a) Assessment of the "design" of the change management controls b) "Operating effectiveness" testing of change approvals c) Assess source code management d) All of the above

Which of the following is the most complicated principle of internal control and must be an ongoing process that involves a combination of both internal and external sources? a) verification b) recordkeeping c) protection of assets