When There Are Numerous Property and Equipment Transactions During the Year

question 62

Multiple Choice

When there are numerous property and equipment transactions during the year, an auditor planning to set control risk at low usually plans to obtain an understanding of internal control and to perform:

• A)tests of controls and extensive tests of property and equipment balances at the end of the year.
• B)extensive tests of current year property and equipment transactions.
• C)tests of controls and limited tests of current year property and equipment transactions.
• D)analytical procedures for property and equipment balances at the end of the year.

---

Definitions:

Platinum Suites

High-end, luxurious accommodations often found in hotels or residential buildings, featuring premium amenities and services.

Projected Number

An estimate or forecast of a future quantity based on current and historical data.

Gold Suites

Luxury hotel accommodations or software packages that offer premium features or services.

Projected Number

An estimate or forecast of a future value based on current data, trends, or statistical models.