The following are nine general balance-related audit objectives for the audit of any balance sheet account (1 through 9) and eleven specific balance-related audit objec¬ tives for the audit of property, plant, and equipment (a through k).

GENERAL BALANCE-RELATED AUDIT OBJECTIVE 1. Existence 2. Completeness 3. Valuation 4. Accuracy 5. Classification 6. Cutoff 7. Detail tie-in 8. Rights and obligations 9. Presentation and disclosure SPECIFIC BALANCE-RELATED AUDIT OBJECTIVE

a. There are no unrecorded capital assets in use.

b. The company has valid title to the assets owned.

c. Details of property, plant, and equipment agree with the general ledger.

d. Capital assets physically exist and are being used for the purpose intended.

e. Property, plant, and equipment are recorded at the cor¬ rect amount.

f. The company has a contractual right for use of assets leased.

g. Liens or other encumbrances on property, plant, and equipment items are known and disclosed.

h. Cash disbursements and/or accrual cutoff for property, plant, and equipment items are proper.

i. Expense accounts do not contain amounts that should have been capitalized.

j. Amortization is determined in accordance with an acceptable method and is materially correct as com¬ puted.

k. Capital asset accounts have been properly adjusted for declines in historical cost.

Required

a. What are the purposes of the general balance-related audit objectives and the specific balance-related audit objectives? Explain the relationship between these two sets of objectives. %

b. For each general balance-related objective, identify one or more specific balance-related audit objectives. No let¬ ter can be usect for moredhan one general balance-related audit objective.