Which of These Is Not True Regarding Substantive Procedures for Property

question 32

Multiple Choice

Which of these is not true regarding substantive procedures for property, plant and equipment in an initial audit:

• A) the auditor concentrates on the current year's transactions only
• B) evidence must be obtained as to the fairness of the opening balances.
• C) evidence must be obtained as to the ownership of the assets.
• D) all of the above are untrue.

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Definitions:

Simplify

To make an expression less complex by combining like terms and executing arithmetic operations where possible.

Fraction

A numerical quantity that represents a part of a whole, typically in the form of a numerator divided by a denominator.

Exponent

A number that indicates how many times a base is multiplied by itself.

Fraction

A mathematical expression representing the division of one quantity by another, noted by a numerator divided by a denominator.