Why is an auditor interested in the repairs and maintenance expense account when auditing the PPE asset
Question:
Why is an auditor interested in the repairs and maintenance expense account when auditing the PPE asset account? Explain your answer with reference to the assertions at risk.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 42% (7 reviews)
When auditing the Property Plant and Equipment PPE asset account auditors are interested in various related accounts including the repairs and mainten...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Auditing A Practical Approach
ISBN: 9780730364573
3rd Edition
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton
Question Posted:
Students also viewed these Business questions
-
Explain the relationship between the repairs and maintenance expense account and the PPE asset account. Why is the auditor interested in examining debits to both accounts when auditing PPE? Explain...
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
Why is an auditor interested in PPE that is not currently being used or that could become idle in the near future? Why would an auditor review directors' board minutes to gather information about...
-
(a) the maximum shear stress magnitude T1 in aluminum tube (1). (b) the maximum shear stress magnitude T2 in brass shaft segment (2). (c) the maximum shear stress magnitude T3 in brass shaft segment...
-
Paxton Kingsley, the chief executive officer of Kingsley Corporation, has assembled his top advisers to evaluate an investment opportunity. The advisers expect the company to pay $400,000 cash at the...
-
Which of the following statements are correct? Explain if incorrect. a. I accept the null hypothesis since sample evidence is not inconsistent with the null hypothesis. b. Since sample evidence...
-
An analyst estimates that a stock has the following return probabilities and returns, depending on the state of the economy: State of Economy Probability Retum Good .1 15% Normal .6 13 Poor .3 7 What...
-
The following account balances come from the records of King Company: During the accounting period, King recorded $21,000 of service revenue on account. The company also wrote off a $180 account...
-
Menlo Company distributes a single product. The companys sales and expenses for last month follow: Total Per Unit Sales $ 310,000 $ 20 Variable expenses 217,000 14 Contribution margin 93,000 $ 6...
-
The data shown in Table 10E.10 are temperature measurements made every 2 minutes on an intermediate chemical product (read down, then across from left to right). (a) Calculate the sample...
-
Explain why completeness is a more critical assertion for liabilities than for assets. What procedures are primarily designed to address the completeness assertion for payables?
-
Auditing payables usually focuses most heavily on: (a) Existence. (b) Rights and obligations. (c) Existence, and rights and obligations. (d) Completeness, and valuation and allocation.
-
In Problems 1732, solve each triangle. a = 2, b = 3, C = 70
-
In what way can having a high regard for people increase the possibility offraud?
-
Former Supreme Court Justice Goldberg left the board of TWA because he believed he needed more information about the company's operations and a staff to provide such information. How could Mr....
-
The long-range audit schedule encourages management participation because: a. The schedule is reviewed at the higher levels of management. b. Management fears the auditor. c. It covers activities...
-
Cite two specific examples that would seem to dispute Peter Drucker's statement that boards of directors do not function.
-
Long-range audit schedules provide justification for the internal auditing department budget because they: a. Demonstrate an organized approach by the director of internal auditing. b. Bring proposed...
-
Q1. The total amount of financing received from shareholders since incorporation is ____________ million and is generally referred to as ____________. Common stock of the Coca-Cola Company was...
-
Swifty company is a publicly held corporation whose $1 par value stock is actively traded at $30 per share. The company issued 3400 shares of stock to acquire land recently advertised at $93000. When...
-
Starr Corp. approved a plan of merger with Silo Corp. One of the determining factors in approving the merger was the strong financial statements of Silo, which were audited by Cox & Co., CPAs. Starr...
-
Henry Owens, CPA works in a local accounting firm. He is the tax manager on a major client in the office. The firm prepares compiled financial statements for the client on a quarterly basis. The...
-
The AICPA rule on general standards identifies four aspects of professional behavior. Identify each of the four aspects and develop an example illustrating the violation of each aspect.
-
The transactions in the journal and the accounts in the ledger are linked together by a transfer process called:Group of answer choicesaudit trailmigratingpostingbalancing
-
Garbo township recorded it's police departments appropriations for the year ending June 30, 2025. Police appropriations had increased to $7,600,000. During the year's first budgetary month ending...
-
QUALITY INDICATOR: Ninety-five percent of physician appointments/reappointments will be completed within 90 days of receipt of all required materials. medical staff office health information business...
Study smarter with the SolutionInn App