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In Testing Acquisitions, the Auditor Must Understand the Relevant Accounting

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Essay

In testing acquisitions, the auditor must understand the relevant accounting standards to insure the client adheres to accepted accounting practices for property, plant, and equipment. Describe three of the auditor's concerns in this area.


Definitions:

Auscultating

The act of listening to the sounds made by internal organs, especially the heart and lungs, typically using a stethoscope.

Palpating

The technique of examining parts of the body by touch, especially to diagnose illness or ascertain the size, shape, and firmness of organs.

Dehydration

A condition resulting from the excessive loss of body water and electrolytes.

Vasodilation

The widening of blood vessels, which decreases blood pressure and allows for increased blood flow.

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