SOURCE: AUDIT 1997 EXAMS, #4, PARTS 1-18 - QUESTION Items 11 through 18 represent tick marks (symbols) that indicate procedures performed or comments documented in auditing the Property, plant, and equipment and Accumulated depreciation accounts of American Manufacturers, Inc. During the year under audit, American Manufacturers purchased new computers directly from wholesalers and constructed an addition to one of its buildings. The company's employees also refurbished the fixtures of several older buildings. Select, from the list of procedures/comments on the next page, the procedure/comment that the auditor most likely per- formed/documented at each point of the audit where a tick mark was made on the working papers. Select only one procedure/comment for each item. A procedure/comment may be selected once or not at all. Assume that the working papers foot and cross foot. American Manufacturers, Inc. Property, Plant, and Equipment and Accumulated Depreciation October 31, 1997 Accumulated Depreciation Balance 10/31/96 650,000 Property. Plant, and Equipment Additions Disposals Other 70,000 1 0 Balance 10/31/97 720,000 Depreciation. Rate Methad Balance 10/31/96 Provision Disposal Balance 10/31/97 Land Buildings 3,270,000 230,000 (30,000) 3,470,000 1,144,500 168,500 0 1,313,000 5% 10% S/L SL Equipment 90,000 (12,000) + 0 1,828,000 700,000 179,500 1,750,000 850,000 6.520.000 Fixtures SOURCE: AUDIT 1997 EXAMS, #4, PARTS 1-18 - QUESTION 200,000. 500.000 O (12.000) 30,000.0 1.080,000 2098.000 (12,000) 867,500 0. 654,750 (12.000) 2835 250 510,000. 144,750 2354 sa 492 750 Items to be Answered List of procedures/comments Property, Plant, and Equipment and Accumulated Depreciation CeeEOEES 2 Does not recompute correctly. Tested reasonableness of calculation. Traced amount to current year's trial balance and general ledger. Reclassification entry for fixtures erroneously recorded as buildings. Reclassification entry for buildings erroneously recorded as fixtures. Traced amount to prior year's working Papers. Sold six fully-depreciated computers to employees, no audit procedures necessary, Confirmed, with exception. Confirmed, without exception. Examined supporting vendors' invoices, canceled checks, asset subsidiary ledger And board of directors' minutes of meetings authorizing transactions. Examined supporting work orders and engineers' reports, canceled checks, asset subsidiary ledger, and board of directors' minutes of meetings authorizing transactions. Examined supporting deed and purchase contract, canceled checks, asset subsidiary ledger, and board of directors' minutes of meetings authorizing transactions. SOURCE: AUDIT 1997 EXAMS, #4, PARTS 1-18 - QUESTION Items 11 through 18 represent tick marks (symbols) that indicate procedures performed or comments documented in auditing the Property, plant, and equipment and Accumulated depreciation accounts of American Manufacturers, Inc. During the year under audit, American Manufacturers purchased new computers directly from wholesalers and constructed an addition to one of its buildings. The company's employees also refurbished the fixtures of several older buildings. Select, from the list of procedures/comments on the next page, the procedure/comment that the auditor most likely per- formed/documented at each point of the audit where a tick mark was made on the working papers. Select only one procedure/comment for each item. A procedure/comment may be selected once or not at all. Assume that the working papers foot and cross foot. American Manufacturers, Inc. Property, Plant, and Equipment and Accumulated Depreciation October 31, 1997 Accumulated Depreciation Balance 10/31/96 650,000 Property. Plant, and Equipment Additions Disposals Other 70,000 1 0 Balance 10/31/97 720,000 Depreciation. Rate Methad Balance 10/31/96 Provision Disposal Balance 10/31/97 Land Buildings 3,270,000 230,000 (30,000) 3,470,000 1,144,500 168,500 0 1,313,000 5% 10% S/L SL Equipment 90,000 (12,000) + 0 1,828,000 700,000 179,500 1,750,000 850,000 6.520.000 Fixtures SOURCE: AUDIT 1997 EXAMS, #4, PARTS 1-18 - QUESTION 200,000. 500.000 O (12.000) 30,000.0 1.080,000 2098.000 (12,000) 867,500 0. 654,750 (12.000) 2835 250 510,000. 144,750 2354 sa 492 750 Items to be Answered List of procedures/comments Property, Plant, and Equipment and Accumulated Depreciation CeeEOEES 2 Does not recompute correctly. Tested reasonableness of calculation. Traced amount to current year's trial balance and general ledger. Reclassification entry for fixtures erroneously recorded as buildings. Reclassification entry for buildings erroneously recorded as fixtures. Traced amount to prior year's working Papers. Sold six fully-depreciated computers to employees, no audit procedures necessary, Confirmed, with exception. Confirmed, without exception. Examined supporting vendors' invoices, canceled checks, asset subsidiary ledger And board of directors' minutes of meetings authorizing transactions. Examined supporting work orders and engineers' reports, canceled checks, asset subsidiary ledger, and board of directors' minutes of meetings authorizing transactions. Examined supporting deed and purchase contract, canceled checks, asset subsidiary ledger, and board of directors' minutes of meetings authorizing transactions
