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.

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Definitions:

Standard Deviation

A measure of the dispersion or variation in a distribution or set of data, indicating how much individual data points differ from the mean.

Safety Inventories

Additional quantities of stock kept on hand to prevent out-of-stock situations due to uncertainties in supply or demand.

Annual Holding Cost

The total expenses associated with storing unsold goods or materials for one year, including warehousing, depreciation, insurance, and opportunity costs.

UPS

United Parcel Service, a global package delivery and supply chain management company known for its shipping, freight, and logistics services.