When Auditing Accrued Property Taxes

question 93

Multiple Choice

When auditing accrued property taxes,

• A) the auditors will generally only verify the larger payments since there are usually many property tax payments.
• B) property taxes should only be charged to one expense account.
• C) the auditor begins by obtaining a schedule of property tax payments from the client.
• D) the auditor must generally spend a considerable amount of time in this area.

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Definitions:

Uniform Distribution

A type of probability distribution in which all outcomes are equally likely, characterized by constant probability over its intervals.

Electronics Test

An examination or procedure designed to assess the functionality and performance of electronic devices.

Probability

A measure of the likelihood or chance that a certain event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Uniform Distribution

A type of probability distribution in which all outcomes are equally likely; each variable has the same probability of occurring.