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WorksheetsFinancial Audit 2 - 18A3 - Audit on Tax (I)
Total questions: 5
Worksheet time: 4mins
In auditing income tax expense, to identify whether there have been any material violations of federal or state tax laws, the auditor might:
hold discussions with client personnel
examine reports issued by the Internal Revenue Service after completion of an examination of the client’s tax return
All of the above
None of the above
When auditors verify accrued property taxes, all eight balance related audit objectives except realizable value are relevant. Two are especially significant:
Completeness and accuracy
Existence and detail tie-in
Existence and classification
Classification and cut-off
In many cases, property taxes are charged to more than one expense account. In that case, the auditor should test for correct classification by:
recalculating the portion of the total tax applicable to the current year for each piece of property
evaluating whether the correct amount was charged to each account
All of the above
None of the above
The failure to include properties for which taxes should be accrued will understate the (a)
A violation of federal tax laws directly affects (a) and income taxes payable.
