When Auditing Accrued Property Taxes

question 49

Multiple Choice

When auditing accrued property taxes,

• A) the source for the debits to the liability account is the acquisitions journal.
• B) realizable value is an important balance-related audit objective.
• C) the ending balance in the account should be confirmed with the applicable taxing authority.
• D) the most important consideration for the auditor is that the same portion of each tax payment for the accrual that was used in the preceding year is used in the current year.

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Definitions:

Morally

Pertaining to principles of right and wrong behavior and the goodness or badness of human character.

Systematic Thinking

An approach to problem-solving that involves breaking down complex issues into manageable parts and analyzing them in a structured and logical manner.

Moral Consequences

The ethical outcomes or implications of an action, reflecting its rightness or wrongness in terms of values and principles.

Rational Decision-making Model

A systematic process of making decisions that are logically sound, based on available information and aimed at achieving the best possible outcome.