The Auditor Is least Likely to Discover Unrecorded Retirements of Property

question 42

Multiple Choice

The auditor is least likely to discover unrecorded retirements of property, plant and equipment assets by:

• A) analysing the miscellaneous revenue account.
• B) investigating the disposition of facilities associated with discontinued product lines.
• C) selecting retirement work orders from the accounting records and verifying their accuracy.
• D) reviewing insurance policies for termination or reductions of coverage.

---

Definitions:

Firms

Business entities or organizations that produce goods or provide services with the aim of making a profit, often operating within specific industries or markets.

Economic Theory

A set of principles and models that explains how economies operate and how economic agents interact.

Total Profit

The difference between a firm's total revenue and its total costs, indicating the overall financial gain from its business activities.

Principle of Marginal Analysis

The principle of marginal analysis involves making decisions based on the additional benefits and costs of an action compared to its alternatives.