Because of the reliability of controls included in automated information systems, often routine transactions are not a high-risk area for substantive testing on audit engagements. Furthermore, recent evidence that estimates are often used in managing earnings and committing fraud emphasizes the need to carefully examine all key estimates on audit engagements. Depending on a client's internal control, non-routine transactions will require varying degrees of substantive testing. Thus, identifying transactions as routine, non-routine, or accounting estimates is important. For each of the following transactions likely to occur at Toyota, indicate whether the transaction is routine, nonroutine, or an accounting estimate.

a. Merger and Acquisition Costs

b. Write-off of Existing Assets

c. Irovision for Future Costs

d. Recognition of Intangible Assets

e. Reserves for Excess/Obsolete Inventory

f. Purchases of Components for Assembly 

g. Contracts with Licensed Dealers 

h. Capital Equipment Procurement 

i. Accruals for Warranties 

j. Stolen or Damaged Vehicles 

k. Transportation Costs 

l. Acquisition of New Product Brand Names 

m. Advertising Costs for Brand Support 

n. Sales to Dealerships 

o. Special Promotion Incentives 

p. Product Recalls 

q. Dealer Warranty Claims