1. Do the auditors question the service lives adopted by the client for plant assets, or do they accept the service lives without investigation? Explain.

2. What is a principal objective of the auditors in analyzing a Maintenance and Repairs expense account?

3. Cite various substantive tests the auditors could employ that might detect unrecorded retirements of property, plant and equipment.

4. How does auditor ascertain the future economic benefit of recorded intangibles?

5. Research and development expenditures should be examined as part of the audit of intangible assets. Explain why?

6. In testing prepaid insurance, how does an auditor address the audit objective of rights and obligations?