When examining documentation supporting costs and expenses, an auditor must consider its availability and its reliability. Discuss
Question:
When examining documentation supporting costs and expenses, an auditor must consider its availability and its reliability. Discuss the reliability and adequacy of documentation you would expect for the following expenses.
a. Purchase of stationery and supplies.
b. Officer travel expenses.
c. Rental expense on office space.
d. Cost of taxi to send sick employee home.
e. Purchase of hams for Christmas gift to customers.
f. Contribution (purchase of tickets to Policemen's Ball).
g. Payment of income taxes.
h. Payment of directors' fees ( \(\$ 500\) per meeting).
i. Employee salary expense.
j. Payment of FICA taxes withheld from employees.
k. Payment of electric bill.
Step by Step Answer:
When examining documentation supporting costs and expenses the reliability and adequacy of documentation are crucial for the auditor to assess the accuracy and validity of the expenses Heres a discuss...View the full answer
Auditing An Assertions Approach
ISBN: 9780471134213
7th Edition
Authors: G. William Glezen, Donald H. Taylor
