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WorksheetsAudit of Property, Plant and Equipment
Total questions: 10
Worksheet time: 3mins
What is environment risk?
Inherent risk and detection risk
Control risk and detection risk
Inherent risk and control risk
Control risk and audit risk
The relationship between audit risk and materiality consideration is
Inverse
Direct
No relationship
Plant register can be used to
Ensure all the assets in the register are still exist and are in good condition
Perform the PPE stocktake by physically examination
Examine assets for damaged and obsolescence
All of the above
Accounting standard for PPE
MFRS 102
MFRS 141
MFRS 116
MFRS 16
'The equipment that have been replaced is discarded due to its lack of value without an accounting entry.' is the example of misstatement acquisition of PPE.
True
False
What are the examples of PPE?
Computer software
Undeveloped land
Biological assets
Leasehold property
What is the objective substantive test procedure in the confirming of repair and maintenance balance?
Rights and obligation
Existence
Valuation and completeness
Cut-off
Answers below show tests that can be used by auditors to test provision for depreciation, EXCEPT
Compare rate and investigate variance
Analytical procedures
Observation
Review depreciation schedules
Recalculation
The following is the examples of the procedures to verify possible understatement and overstatement balance of fixed assets, EXCEPT
Test basis selects some equipment items and trace to plant register
Compare plant register with general ledger and making inquires reasons for not including in general ledger cost of certain assets if appearing in plant register
Verify the existence and completeness of PPE amount and ensure that the finance leases have not been treated as operating income
All of the above are correct
What is our lecturer's name?
Dr. Abdulsalam Mas'ud
I don't know
Dr. Salau Abdulmalik Olarinoye
Dr. Solou Olarinoyea
