What Tests Do Auditors Typically Perform on a Lead Schedule

question 39

Essay

What tests do auditors typically perform on a lead schedule for property, plant, and equipment and what assertion are they testing?

---

Definitions:

Equilibrium

A state of balance in a market or system where opposing forces cancel each other out and no changes occur over time.

Price Floor

A government- or body-imposed price control or limit on how low a price can be charged for a product.

Surplus

The situation in which the quantity supplied of a product exceeds the quantity demanded at the current price.

Law of Supply

A fundamental principle of economics that states that, all else equal, an increase in price results in an increase in the quantity supplied, and vice versa.