When Auditing PP&E, the Auditor's Approach Is Generally to

question 52

Multiple Choice

When auditing PP&E, the auditor's approach is generally to

• A)examine evidence supporting the amounts in the ending balance.
• B)examine evidence supporting additions during the year.
• C)follow a reliance strategy, testing internal controls and analytical procedures.
• D)concentrate on finding unrecorded assets.

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Definitions:

Public Works Administration

A New Deal agency that contracted with private construction companies to build roads, bridges, schools, hospitals, and other public facilities.

Tennessee Valley Authority

Administrative body created in 1933 to control flooding in the Tennessee River valley, provide work for the region’s unemployed, and produce inexpensive electric power for the region.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s to respond to the Great Depression.

Liberalism

A political and moral philosophy based on liberty, consent of the governed, and equality before the law, emphasizing individual rights, democracy, and free markets.