Why does the audit of fixed assets generally take less time than the audit of current assets?

Question:

Why does the audit of fixed assets generally take less time than the audit of current assets? Why is it audited using a predominantly substantive approach?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Modern Auditing

ISBN: 9780471230113

1st Edition

Authors: Graham Cosserat

See More Books

Question Posted: May 06, 2024 08:04 AM

See More Questions

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
The following are situations that may violate the general rules of conduct of professional accountants. Assume in each case that the PA is a partner. a. Simone Able, a PA, owns a substantial limited...
Victoria is managing the performance of audit procedures on the trade receivables transaction file. Her main focus is the posting of entries for sales and sales returns to the control account and the...
Describe how a noninsulating allocation promotes cooperation among managers and encourages mutual monitoring.
Determine the proportionality constant k in dy/dt = ky for problem 9. Then use y = 4.5ekt to find the population after 100 years.
Repeat Example 17.6 but using first-, second-, third-, and fourth order interpolating polynomials to predict the population in 2000 based on the most recent data. That is, for the linear prediction...
indication of the scientific concerns of human behavior, and
Pea Corporation purchased 75 percent of the outstanding voting stock of Sen Corporation for $2,400,000 on January 1, 2011. Sen's stockholders' equity on this date consisted of the following (in...
Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for...
Discuss the procedures that would be useful in ensuring that all disposals of fixed assets have been recorded.
What are the audit objectives for fixed asset transactions and balances?
How might you identify how open an economy is? Is international trade more or less important to the United States than to many other countries?
Questions 6-8 refer to the same problem A sinusoidal wave with wavelength 2 m and amplitude 5 mm is traveling along the x axis. The wave is traveling in the -x direction at a speed of 2m/s At t = Os,...
Consider a circuit where one or more capacitors is discharged through a light bulb filament with a resistance of 3.0 0.3 . Assume that the resistance of the filament is constant (to within the stated...
3. For a vibrating string of length with fixed ends, each mode of vibration can be written as where wk ux(x, t) = M* sin(wxt + k) sin(x) and Mk, Ok are determined by initial conditions. For all k >...
The combined weight of the load and the platform is 200 lb, with the center of gravity located at G. If a couple moment of M = 900 lb ft is applied to link AB, determine the angular velocity of links...
Due In: 06:48:23 Questions Question 1 (4) O Question 2 (8) Question 2 of 2 A company sold $150,000 bonds and set up a sinking fund that was earning 8.5% compounded semi-annually to retire the bonds...
You are in the process of winding up the field work on Top Stove Corporation, a company that manufactures and sells kerosene space heating stoves. To date, there has been every indication that the...
CdF2 (s) Cd+ (aq) + 2 F- (aq) 1. A saturated solution of CdF2 is prepared. The equilibrium in the solution is represented above. In the solution [Cd+] eq = 0.0585 M and [F-] eq = 0.117 M. a....
Data Table 1 Month January February March April May June July August September October November December Totals Labor Hours 1,262 962 1,318 1,280 942 1,188 1,114 1,006 1,344 1,196 760 792 13,164...
08: When furniture value increased from OMR 10.000 to OMR 12.000, then revaluation account is c. Debited with OMR 2,000 a. Debited with OMR 12,000 d. Credited with OMR 2.000 b. Credited with OMR...
Cullumber Tool Company's December 3 1 year - end financial statements contained the following errors. \ table [ [ , December 3 1 , 2 0 2 5 , December 3 1 , 2 0 2 6 ] , [ Ending inventory,$ 8 , 8 0 0...

Why does the audit of fixed assets generally take less time than the audit of current assets?

Question:

Step by Step Answer:

The audit of fixed assets generally takes less time than the audit of current assets due to several reasons 1 Lower Transaction Volume Fixed assets typically have a lower volume of transactions compar...View the full answer

Modern Auditing

Students also viewed these Business questions