Testing for by examining lease agreements

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Reference no: EM131293082

1. It is important for the auditor to verify that the controls described by the employees during the auditor’s survey of controls over property, plant and equipment have actually been

a. Implemented

b. Written

c. Designed

d. Agreed upon

e. Documented

2. Auditors must confirm that the ________ of Property, Plant, and Equipment agree with the general ledger

a. Controls

b. Detail ledgers

c. Asset numbers

d. Documents

e. Serial numbers

3. After obtaining an understanding of the client and its environment, auditors must identify the _________ risk related to the accounts

a. Inherent

b. Audit

c. Fraud

d. Detection

e. Error

4. Which of the following would the auditor NOT be testing for by examining lease agreements?

a. Existence

b. Estimates

c. Presentation

d. Valuation

e. Rights

5. Auditors test effectiveness of controls to ensure they can justify their planned levels of _______ risk

a. Fraud

b. Effective

c. Control

d. Inherent

e. Detection

6. Retirement may also be tested for ______ and supporting work orders

a. Capitalization

b. Authorization

c. Expense

d. Purchase

e. Recording

7. Auditors may ______ the beginning balance of plant assets by reference to the prior year audit

a. Verify

b. Value

c. Cost

d. Ignore

e. Consider

8. Auditors need to confirm that the _______ ledgers agree in total to the general ledger

a. Work

b. Subsidiary

c. Old

d. Analytical

e. Change

9. A summary analysis of the property accounts indicates additions and _______

a. Decisions

b. Intentions

c. Statements

d. Retirements

e. Purchases

10. Auditors need to test ______ from construction in process to property

a. Additions

b. Transfers

c. Disposals

d. Deletions

Reference no: EM131293082

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