In Testing Acquisitions, the Auditor Must Understand the Relevant Accounting

question 77

Essay

In testing acquisitions, the auditor must understand the relevant accounting standards to insure the client adheres to accepted accounting practices for property, plant, and equipment. Describe below the auditor concerns in this area.

Comprehend the process and purpose of totaling sales journal's columns at the end of the month.

Grasp the necessity of ensuring total debits and credits are equal in a columnar journal before posting.

Identify the appropriate journal for recording various types of transactions.

Define and understand the concept of a business segment.

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Definitions:

Ethics

The branch of knowledge that deals with moral principles, guiding behaviors, and decision-making in personal and professional contexts.

Greek Word

A term or phrase that originates from the Greek language.

Ethical Theories

The systematic examination of morals, principles, and values to determine right and wrong behavior within various philosophical, cultural, and social contexts.

Domains

Specific areas or fields of activity, knowledge, or interest.