The Following Procedures May Be Useful to the Auditor in Determining

question 20

Multiple Choice

The following procedures may be useful to the auditor in determining whether all retirements have been recorded except:

• A) analyze the miscellaneous expense account for proceeds from sales of plant assets.
• B) investigate the disposition of facilities associated with discontinued product lines and operations.
• C) trace retirement work orders and authorizations for retirements to the accounting records.
• D) review insurance policies for termination or reductions of coverage.
• E) make inquiry of management as to retirements.

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Definitions:

Mutually Exclusive

Events that cannot occur at the same time; the occurrence of one event excludes the possibility of the other event(s).

Intersection

The set of elements common to two or more sets.

Conditional

Pertaining to expressions, statements, or functions that involve conditions where outcomes depend on fulfilling specified criteria.

Experimental Outcomes

Refers to the various results that could potentially occur as a result of a scientific experiment.