weakness in internal control over recording purchased equipment may cause the auditor to:
weakness in internal control over recording purchased equipment may cause the auditor to:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A weakness in internal control over recording purchased equipment may cause the auditor to:
a.
Review the subsidiary ledger to ascertain whether depreciation was taken on each item of equipment during the year.
b.
Inspect certain items of equipment in the plant and trace those items to the accounting records.
c.
Trace additions to the "other assets" account to search for equipment that is still on hand but no longer being used.
d.
Select certain items of equipment from the accounting records and locate them in the plant.
e.
Review salvage value estimates for reasonableness.
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