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:

Religious Toleration

The practice of allowing and accepting religious beliefs and practices that differ from one's own, often within a society or a state.

Economic Independence

The state of having sufficient personal wealth to live, without having to depend on income from some form of employment.

Genuine Freedom

The authentic state of being free from undue or oppressive restrictions imposed by authority on one's way of life, behavior, or political views.

Market Revolution

A period of rapid economic change in the United States during the 19th century, marked by the expansion of capitalism, the development of infrastructure, and the increase of labor and consumer markets.