QUIZ 2 AUD589 OCT2023

Completeness and existence are the auditor's primary objectives in auditing manufacturing equipment.

• TRUE

• FALSE

The primary characteristic that distinguishes property, plant, and equipment from inventory, prepaid expenses, and investments is the intention to use property, plant, and equipment as a part of the operations of the client's business over their expected life.

• TRUE

• FALSE

The emphasis in auditing manufacturing equipment is on the verification of current-period disposals and acquisitions.

• TRUE

• FALSE

One of the auditor's primary objectives when auditing manufacturing equipment is completeness.

• TRUE

• FALSE

One unique characteristic of the capital acquisition and repayment cycle is that relatively few transactions affect the account balances, but each transaction is often highly material in amount.

• TRUE

• FALSE

When auditing the capital acquisition and repayment cycle, it is common to verify each transaction taking place in the cycle for the entire year as a part of verifying the balance sheet accounts.

• TRUE

• FALSE

The three most important audit objectives for cash are accuracy, existence, and classification.

• TRUE

• FALSE

Many of the auditor's audit procedures in the audit of cash centre around the client's bank confirmations.

• TRUE

• FALSE

Tracing outstanding checks to subsequent period bank statements tests the cutoff audit objective.

• TRUE

• FALSE

Confirmations are commonly used to verify additions of property, plant, and equipment.

• TRUE

• FALSE