You are the in-charge auditor for a company who has been an audit client for several years. Which of the following is not a category of tests commonly associated with the audit of manufacturing equipment?
A) verification of depreciation expense
B) analytical procedures
C) verification of current-period disposals
D) verification of the beginning balance in the equipment account

Question

Quizplus · Accepted Answer

Verification of the beginning balance in the equipment account is typically part of the audit procedures for the prior year, not the current year. The focus for the current year would be on transactions and events affecting the equipment account during the current period, such as depreciation expense, disposals, and additions, rather than re-verifying the beginning balance.

You Are the In-Charge Auditor for a Company Who Has