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:

Contingency Variables

Factors or conditions that can change and affect the outcome of decision-making processes or situations.

Enduring Change

A lasting transformation within an individual, organization, or society that persists over time.

Behavior

The actions or reactions of an individual or group in response to external or internal stimuli.

Learning

Learning is an enduring change in behavior that results from experience.