You Are Auditing Manufacturing Company and Testing the Audit Related

question 119

Multiple Choice

You are auditing Manufacturing Company and testing the audit related objective of completeness for the equipment accounts. Which of the following audit procedures is most likely to achieve your objective?

• A) Examine vendor invoices and receiving reports.
• B) Physically examine assets.
• C) Examine vendor invoices of closely related accounts such as repairs and maintenance.
• D) Trace individual acquisitions to the fixed asset master file.

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Definitions:

Close-Substitute

A good or service that can easily replace another in satisfying consumer needs, with very little change in consumption patterns.

Consumer Preferences

The tastes, preferences, and priorities that individuals have regarding the consumption of goods and services.

Close-Substitute

A product or service that can easily replace another in the consumption preferences of consumers due to its similarity.

Complements

Goods or services that are consumed together because the use of one enhances the value of the other.