T/F

41. The modified Accelerated Cost Recovery System (MACRS) is always acceptable for the computation of depreciation expenses in accordance with generally Accepted accounting principles.

42. Which of the following would not be evidence the auditor should examine when auditing equipment additions?

a. Invoices

b. Deeds

C. Minutes of the Board of Directors meetings

d. Cancelled checks

T/F

43. An auditor should trace the opening equipment balances in the general ledger to the current year adjusted trial balance.

T/F

44. Gross Profit= Sales Ending Inventory

T/F

45. A client values its inventory using the lower-of-the-cost-or-market value method. However, they use FIFO for its domestic inventory and LIFO for its international inventory. This would generally constitute a departure from GAAP and would normally cause an auditor to issue either a qualified opinion or an adverse opinion.