When Auditing PP&E,the Auditor's Approach Is Generally to

question 65

Multiple Choice

When auditing PP&E,the auditor's approach is generally to

• A)Examine evidence supporting the amounts in the ending balance.
• B)Examine evidence supporting additions during the year.
• C)Follow a reliance strategy,testing internal controls and analytical procedures.
• D)Concentrate on finding unrecorded assets.

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Definitions:

Ledger Accounts

A record in accounting that is used to aggregate monetary transactions by account, monitoring debits and credits over a period.

Journal Entries

The recorded transactions in the financial books of a company, serving as the initial step in the accounting cycle.

T-Accounts

A graphical representation of a general ledger account, showing debits on the left side and credits on the right side to track transactions.

Luca Pacioli

An Italian mathematician and friar credited as the "Father of Accounting" for his contributions to the field, including bookkeeping principles.