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afternoon am trying to answer this question but its difficult to me can you please help me with these questions please .explain to me if they are true or not true.
1. careful inspect of vehicle’s registration document provides evidence of the existence of the vehicle.
2.Selecting a sample of inventory items from the perpetual inventory records and (physically) counting the items on hand for the sample selected provides evidence of the completeness of inventory.
3. Inspecting the repairs and maintenance account (and similar accounts) in the general ledger for item which may actually be purchases of plant and equipment ,provides evidence relating to the completeness of plant and equipment.4. Inspecting the lease agreements for capitalized leased assets to determine whether the risks and rewards of ownership have transferred to the audit client, provides evidence relating to the valuation of the asset.
5. Observing the receiving clerk counting the good being delivered by a supplier, provides evidence as to the accuracy of purchases.
6.conducting a positive circularization primarily provides evidence as to the valuation of accounts receivable.
1 False. The car might have been recently destroyed in an accident.
2 False. If an item of stock has been omitted from the inventory records, this will not find that error.
3 True. If no items are fount in R&M, then this is evidence that additions are complete.
4 False. It provides evidence that this is an finance/operqating lease. A finance leased asset might have to be impaired.
5 False. What is the clerk comparing the count to? INvoices might be mis-posted
6 False. Just because debtors reply, agreeing with the balance does not mean a debtor intends or can pay. They might reply quickly to stop suspicions about non-payment.
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