An Auditor Wishes to Test the Net Valuation of the Equipment

question 90

Multiple Choice

An auditor wishes to test the net valuation of the equipment in the financial statements of a client.How will the auditor best perform this testing?

• A)Vouch the recorded equipment to an invoice supporting the cost of the equipment when originally purchased.
• B)Compare the ID number on the fixed asset schedule to the identification tag on the asset itself.
• C)Recalculate annual depreciation expense for major additions and a sample of all other equipment.
• D)Confirm material equipment with customers.

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Definitions:

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The state of being stretched tight, which can be physical in terms of objects or emotional/psychological in terms of feelings.

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The extent to which medications and treatments can be obtained by the public, often influenced by factors like regulatory approvals, manufacturing, and distribution networks.

Harm Control

A strategy or set of strategies aimed at reducing the negative effects of hazardous substances or behaviors on individuals and communities.

Drug Abuse

The misuse of legal or illegal substances with the intention of creating pleasurable effects or escaping reality, potentially leading to dependence and harmful consequences.