Which of the following procedures is not a procedure used by an auditor in searching for unrecorded disposals of long-lived assets?
A)Inquire clients about disposals.
B)Examine cash receipts journal.
C)Observe inventory count.
D)Examine scrap sales accounts.

Question

Quizplus · Accepted Answer

Observing inventory count is not a procedure used by an auditor in searching for unrecorded disposals of long-lived assets because it only involves checking the quantity of inventory on hand and not whether any long-lived assets have been disposed of without being recorded. The other choices, including inquiring clients about disposals, examining cash receipts journal, and examining scrap sales accounts, are all procedures commonly used by auditors to search for unrecorded disposals of long-lived assets.

Which of the Following Procedures Is Not a Procedure Used