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Which of the following is a substantive analytical procedure to determine if there is idle equipment ...

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Which of the following is a substantive analytical procedure to determine if there is idle equipment ...

Which of the following is a substantive analytical procedure to determine if there is idle equipment or equipment that was disposed of but not written off?

▸ Compare depreciation expense divided by gross equipment cost with previous years.

▸ Compare gross manufacturing cost divided by some measure of production with previous years.

▸ Compare accumulated depreciation divided by gross equipment cost with previous years.

▸ Compare annual repairs and maintenance accounts with previous years.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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