In Testing for Unrecorded Retirements of Equipment, an Auditor Most

question 24

Multiple Choice

In testing for unrecorded retirements of equipment, an auditor most likely would:

• A)select items of equipment from the accounting records and then locate them during the plant tour.
• B)compare depreciation journal entries with similar prior-year entries in search of fully depreciated equipment.
• C)inspect items of equipment observed during the plant tour and then trace them to the equipment subsidiary ledger.
• D)scan the general journal for unusual equipment additions and excessive debits to repairs and maintenance expense.

---

Definitions:

Unionization Rates

The proportion of employees in a specific industry or economic sector who belong to trade unions.

African Americans

A racial or ethnic group in the United States with origins in any of the black racial groups of Africa.

Transportation Workers

Individuals employed in sectors responsible for moving goods and people, including drivers, pilots, and conductors.

Unionization

The process by which workers form or join a union, an organized group that collectively bargains with employers over wages, working conditions, and other employment terms.