specific s 14-11 14-27 To support financial statement assertions, an auditor dev
ID: 2520829 • Letter: S
Question
specific s 14-11 14-27 To support financial statement assertions, an auditor develops procedures to satisfy or address each assertion. Required: Items (a) through (c) represent assertions for the property and equi pment Select the most appropriate audit procedure from the following list and en number in the appropriate place on the grid. (An audit procedure may be i once or not at all.) enter Audit Procedure: 1. Trace opening balances in the summary schedules to the prior year's audit wod. ing papers. 2. Review the provision for depreciation expense and determine that de preciable lives and methods used in the current year are consistent with those used in the prior year. 3. Determine that the responsibility for maintaining the property and equin- ment records is segregated from the responsibility for custody of property and equipment. 4. Examine deeds and title insurance certificates. 5. Perform cutoff tests to verify that property and equipment additions are recorded in the proper period. 6. Determine that property and equipment are adequately insured. 7. Physically examine all major property and equipment additions.Explanation / Answer
a. Verification of legal right to P&E - 4. Examine deeds and title insurance certificates.
b. Verification of actual existence of P&E - 7.Physically examine all major property and equipment addi.
c. Verification of Balance of P&E - 2.review the prov. for dep. expense & other requirements.
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