Auditors must confirm that the of property plant and, Financial Management

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Auditors must confirm that the of property plant and

1. Auditors must confirm that the __________ of Property, Plant, and Equipment agree with the general ledger.

documents

detail ledgers

controls

serial numbers

asset numbers

2. After obtaining an understanding of the client and its environment, auditors must identify the __________ risks related to the accounts.

inherent

fraud

detection

error

audit

3. Which of the following would the auditor NOT be testing for by examining lease agreements?

existence

presentation

valuation

rights

estimates

4. Auditors test effectiveness of controls to ensure they can justify their planned levels of __________ risk.

inherent

fraud

detection

control

effective

5. Auditors are often concerned with the __________ of cash, as this is where most misstatements occur.

overstatement

understatement

inventory

existence

disclosure

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