When There Are Numerous Property and Equipment Transactions During the Year

question 46

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:

Demographic Segment

A market division based on demographic factors, such as age, race, gender, income, or education level, to refine marketing and targeting strategies.