Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Chapter 19, Problem 22DQP
a.
To determine
State the type of evidence that would be examined to support the beginning balances in the accounts.
b.
To determine
Identify types of evidence would you use to support the additions to each account and the sources of evidence differ for additions to the building account and the equipment accounts.
c.
To determine
Identify types of evidence would you examine to support equipment disposals.
d.
To determine
Identify procedures related to the ending balances in the account.
e.
To determine
Identify other accounts might be impacted by the additions of buildings and equipment, and equipment and to determine other accounts might be impacted by disposals of equipment.
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Students have asked these similar questions
The auditor assigned to audit the property, plant and equipment requested a schedule of property additions for the year as well as a schedule of repairs and maintenance expense,
which of the following is incorrect?
O The audit proposition that a capitalizable cost might have been erroneously charged as outright repairs and maintenance expense is necessary to audit the completeness assertion of PPE additions.
O Tracing property additions to the physical asset is necessary to audit the existence assertion over PPE.
O Items in the schedule of repairs and maintenance shall be vouched to the supporting documents to ascertain whether these are indeed to be recognized as outright expense. This is necessary to audit the
occurrence assertion of the expense.
Items in the schedule of property additions shall be traced back to the supporting documents to verify their propriety. This is necessary to audit the completeness assertion over PPE additions.
17.
Which of the following best describes the auditors' approach to the audit of the ending balance of property, plant, and equipment for a continuing nonpublic client?
Group of answer choices
Audit of selected purchases and retirements for the last few years
Audit of changes in the accounts since inception of the company
Direct audit of the ending balance
Agreement of the beginning balance to prior year's working papers and audit of significant changes in the accounts
Please solve all questions.
You are the manager responsible for the audit of Kicap Manis Berhad, a listed company, for the year ended 31 December 2019. The main business activity of Kicap Manis Berhad is the manufacture of farm machinery. The audit work has been completed, and you are reviewing the working papers in order to draft a report to those charged with governance. During the audit of property, plant and equipment (PPE), the audit team found no material misstatement but the following issues have come to your attention.
It was discovered that authorization had not been gained for the purchase of office equipment with a cost of RM315,000. The officer in charge of the purchase claimed that the management has conveyed their agreement with the purchase in the management team monthly meeting, but the audit team has not been furnished with such minutes of meeting even after numerous requests.
The client is using an internally developed PPE system, PropertyCare, to maintain the…
Chapter 19 Solutions
Auditing And Assurance Services
Ch. 19 - Identify three asset accounts, three expense...Ch. 19 - Explain the relationship between substantive tests...Ch. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Prob. 10RQ
Ch. 19 - Which documents will be used to verify accrued...Ch. 19 - Prob. 12RQCh. 19 - Prob. 13RQCh. 19 - Prob. 14RQCh. 19 - Prob. 15.1MCQCh. 19 - Prob. 15.2MCQCh. 19 - Prob. 15.3MCQCh. 19 - Prob. 16.1MCQCh. 19 - Prob. 16.2MCQCh. 19 - Prob. 16.3MCQCh. 19 - Prob. 17.1MCQCh. 19 - Prob. 17.2MCQCh. 19 - Prob. 17.3MCQCh. 19 - Prob. 18.1MCQCh. 19 - Prob. 18.2MCQCh. 19 - Prob. 18.3MCQCh. 19 - Prob. 19DQPCh. 19 - Prob. 20DQPCh. 19 - Prob. 21DQPCh. 19 - Prob. 22DQPCh. 19 - Prob. 24DQPCh. 19 - Prob. 25DQPCh. 19 - You are auditing the financial statements of...Ch. 19 - Prob. 27DQPCh. 19 - Prob. 28DQPCh. 19 - Prob. 29DQP
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