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.

---

Definitions:

Deindustrialization

Term describing decline of manufacturing in old industrial areas in the late twentieth century as companies shifted production to low-wage centers in the South and West or in other countries.

U.S. Economy

The economic system of the United States, characterized by a mixed economy with significant levels of both private and public sector activity.

1970s

A decade known for significant cultural, political, and technological changes worldwide, including the end of the Vietnam War and the beginning of the environmental movement.

Manufacturers

Entities engaged in the industrial production of goods, transforming raw materials into finished products on a large scale.