Which of the Following Audit Procedures Would Be Least Likely

question 54

Multiple Choice

Which of the following audit procedures would be least likely to lead the auditor to find unrecorded fixed asset disposals?

• A)Examination of insurance policies for evidence of a dropped or cancelled policy.
• B)Review of repairs and maintenance expense.
• C)Review of property tax files.
• D)Scanning of invoices for fixed asset additions for evidence of a purchase to replace a previously owned fixed asset.

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Definitions:

National Income

The total amount of money earned within a country from the production of goods and services over a specified period, usually a year.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, stripping out the effects of inflation.

GDP

Gross Domestic Product, a measure of the total economic output of a country within a specific time period.

Net Exports

The difference between a country's total value of exports and its total value of imports.