The Auditor Is Testing for Unrecorded Retirements/disposals of Equipment

question 66

Multiple Choice

The auditor is testing for unrecorded retirements/disposals of equipment. Which of the following audit procedures would the auditor most likely use?

• A) Select items from the fixed asset master file and then physically locate them.
• B) Examine the repairs and maintenance amount for large debits.
• C) Compare current year's depreciation expense with the previous year's depreciation expense.
• D) Trace acquisition documents to the fixed asset master file.

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Definitions:

Introversion

A personality trait characterized by a focus on internal feelings rather than external sources of stimulation, often involving a preference for solitary activities.

Trait Theories

Trait Theories are a major perspective in psychology that theorizes personality is composed of enduring characteristics which influence behavior across situations.

Social-cognitive

A theory that emphasizes the role of observational learning, social experience, and reciprocal determinism in the development of personality.

Describing

The act of giving a detailed account or explanation of something in words.