SOURCE: AUDIT 1997 EXAMS, 84. 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. The following illustrates a Manual System For Executing Purchase and Cash Disbursement Transactions. Required: Indicate what each of the letters (A) through (L) represent. (Adapted from CPA Exam, May 1983 # 5) PURCHASING RECEIVING VOUCHERS PAYABLE Pre From Parsbeslag, E From Veedor From Payable Vrochen Stores Beli - Pechose 4 Onder G Approved 1 Requisition -44132 Voucher Package Requisitos Perde TRR Twice Approval Voucher By -N Goode Mach With Purchase Order And Match Documents Rei B. Pre Check Relaas | Amer Requisition Par Ordets Pc Order To Order The O2 Perhet Ordie K PeeOn Recept RARE Rearl Restling Report Vouch Regu Per One Ros. Report L Check copy Rem2 Sivandek Advice 1 Com For Recipes Ant Retum S Tu RE B Ver Piage TE OR Due Date To Treas GE TO 80 American Manufacturers, Inc. Property, plant, and Equipment and Accumulated Depreciation October 31, 1997 Depreciation Rate Method Balance 10196 Accumulated Depreciation Balance Provision Disposal 10/31/92 5% S/L Property. Plent, and Equipment Balance Balance Account 10/31/96 Additions Dispatals Other 10/31/92 Land 650,000 70,000 0 0 720,000 Bulldings 3,270,000 230,000 0 (30,000) 3,470,000 Equipment 1,750,000 90,000 (12,000) 0 1,828,000 Fixtures 890,000. 200 0 30.000.8 1.080.000.- 6.520.000 (12.000) 02.098.000 10% SL 1.144,500 168,500 - 0 1,313,000 700,000 179,500 (12,000) 867,500 510,000. 144,750. -0 K54.750. 2134.500 490.750 (12001) 2834.250 SOURCE: AUDIT 1997 EXAMS, 84. PARTS 1-18 - QUESTION 15% S/L Items to be Answered (A) (B) (C) (D) 13. 14.2 15. - 16. 36ce@eses & 17. () (H) (1) () List of procedures/comments-Property, Plant, and Equipment and Accumulatod Depreciation 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 meeting authorizing transactions 18. (K) (L.) SOURCE: AUDIT 1997 EXAMS, 84. 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. The following illustrates a Manual System For Executing Purchase and Cash Disbursement Transactions. Required: Indicate what each of the letters (A) through (L) represent. (Adapted from CPA Exam, May 1983 # 5) PURCHASING RECEIVING VOUCHERS PAYABLE Pre From Parsbeslag, E From Veedor From Payable Vrochen Stores Beli - Pechose 4 Onder G Approved 1 Requisition -44132 Voucher Package Requisitos Perde TRR Twice Approval Voucher By -N Goode Mach With Purchase Order And Match Documents Rei B. Pre Check Relaas | Amer Requisition Par Ordets Pc Order To Order The O2 Perhet Ordie K PeeOn Recept RARE Rearl Restling Report Vouch Regu Per One Ros. Report L Check copy Rem2 Sivandek Advice 1 Com For Recipes Ant Retum S Tu RE B Ver Piage TE OR Due Date To Treas GE TO 80 American Manufacturers, Inc. Property, plant, and Equipment and Accumulated Depreciation October 31, 1997 Depreciation Rate Method Balance 10196 Accumulated Depreciation Balance Provision Disposal 10/31/92 5% S/L Property. Plent, and Equipment Balance Balance Account 10/31/96 Additions Dispatals Other 10/31/92 Land 650,000 70,000 0 0 720,000 Bulldings 3,270,000 230,000 0 (30,000) 3,470,000 Equipment 1,750,000 90,000 (12,000) 0 1,828,000 Fixtures 890,000. 200 0 30.000.8 1.080.000.- 6.520.000 (12.000) 02.098.000 10% SL 1.144,500 168,500 - 0 1,313,000 700,000 179,500 (12,000) 867,500 510,000. 144,750. -0 K54.750. 2134.500 490.750 (12001) 2834.250 SOURCE: AUDIT 1997 EXAMS, 84. PARTS 1-18 - QUESTION 15% S/L Items to be Answered (A) (B) (C) (D) 13. 14.2 15. - 16. 36ce@eses & 17. () (H) (1) () List of procedures/comments-Property, Plant, and Equipment and Accumulatod Depreciation 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 meeting authorizing transactions 18. (K) (L.)