In designing the audit program for substantive tests of account receivable and plant assets in the Abbott Company, the auditor identified the following audit objectives: 1. Accounts receivable include all claims on customers at the balance sheet date. 2. Recorded plant assets represent assets that are in use at the balance sheet date. 3. Accounts receivable are properly identified and classified in the balance sheet. 4. Plant assets are stated at cost less accumulated depreciation. 5. The allowance for uncollectible accounts is a reasonable estimate of future bad debts. 6. The entity has ownership rights to all plant assets at the balance sheet date. 7. Accounts receivable represent legal claims on customer for payment. 8. Plant assets balances include the effects of all transactions and events that occurred during the period. 9. Accounts receivable represent claims on customers at the balance sheet date. 10. Depreciation methods used by the client are adequately disclosed in the notes to the financial statements. 11. The account receivable balance represents gross claims on customers and agrees with the sum of the account receivable subsidiary ledger. 12. Capital lease agreements are disclosed in accordance with GAAP. 13. Appropriate disclosures are made about accounts receivable that are assigned or pledged at the balance sheet date. 14. Plant assets are properly identified and classified in the balance sheet. Required Identify the financial statement assertion to which each objective relates. Use the following format for your answers:<\/p>
Objective : Assertion : <\/p>", "transcribed_text": "", "related_book": { "title": null, "isbn": null, "edition": null, "authors": null, "cover_image": null, "uri": null, "see_more_uri": "" }, "free_related_book": { "isbn": "", "uri": "", "name": "", "edition": "" }, "question_posted": "2024-09-12 00:06:30", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/industrial-organizational-psychology-understanding-the-workplace\/where-do-you-think-those-false-beliefs-come-from-1998626", "description": "=+ Where do you think those false beliefs come from?", "stars": 0 }, { "url": "\/rameriz-company-is-a-process-manufacturer-with-two-production-departments", "description": "Rameriz Company is a process manufacturer with two production departments, Blending and Filling. All direct materials are introduced in Blending from the materials store area. What is included in the...", "stars": 3 }, { "url": "\/study-help\/questions\/in-designing-the-audit-program-for-substantive-tests-of-account-10327173", "description": "In designing the audit program for substantive tests of account receivable and plant assets in the Abbott Company, the auditor identified the following audit objectives: 1. Accounts receivable...", "stars": 3 }, { "url": "\/study-help\/questions\/gleason-guitars-produces-acoustic-guitars-the-table-below-contains-budget-6415508", "description": "Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of June: (Indicate the effect of each variance by selecting \"F\" for favorable, \"U\" for...", "stars": 3 }, { "url": "\/study-help\/questions\/barilla-case-which-of-the-following-contributed-significantly-to-the-5192951", "description": "Barilla Case: Which of the following contributed significantly to the weekly order fluctuation Barilla was experiencing? (Choose all that apply) Group of answer choices Lack of trust (history of...", "stars": 3 }, { "url": "\/study-help\/questions\/7-figure-p628-shows-a-quickreturn-mechanism-with-dimensions-calculate-1023898", "description": "7- Figure P6-28 shows a quick-return mechanism with dimensions. Calculate the velocities of points A, B, and C and the velocity of slip for the position shown. 2 = 10 rad\/s CCW. L2-1.00 in L4 4.76...", "stars": 3 }, { "url": "\/study-help\/questions\/slugworth-candies-llc-candymaking-company-that-employs-around-390-people-689120", "description": "Slugworth Candies, LLC, candy-making company that employs around 390 people. The company is composed of seven departments: Executive Staff (40), Human Relations (5), Finance and Accounting (10),...", "stars": 3 }, { "url": "\/study-help\/questions\/a-consider-the-case-of-a-single-mother-with-two-1000371", "description": "A. Consider the case of a single mother with two children, who is trying to decide how many hours to work each month. Suppose, due to constraints such as child care, she is limited to working a...", "stars": 3 }, { "url": "\/study-help\/questions\/hw-assignment-10-fiscal-policy-calculate-and-graph-what-happens-5185234", "description": "HW Assignment #10 Fiscal Policy Calculate and graph what happens to G, AD, GDP, and Prices if the government increases government spending by 100 billion and the MPC : .80. Calculate and graph what...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/under-a-business-structure-called-a-partnership-who-is-liable-10327172", "next": "\/study-help\/questions\/even-though-most-corporate-bonds-in-the-united-states-make-10327174" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "In designing the audit program for substantive tests of account receivable and", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/in-designing-the-audit-program-for-substantive-tests-of-account-10327173" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } } } }