When auditing accrued property taxes,
A) the auditors will generally only verify the larger payments since there are usually many property tax payments.
B) property taxes should only be charged to one expense account.
C) the auditor begins by obtaining a schedule of property tax payments from the client.
D) the auditor must generally spend a considerable amount of time in this area.

Question

Quizplus · Accepted Answer

When auditing accrued property taxes, the auditor should begin by obtaining a schedule of property tax payments from the client. This schedule will provide the auditor with the necessary information to confirm the accuracy of the accrued property tax balance. The auditor must generally spend a considerable amount of time in this area to ensure that all property tax payments have been properly recorded and accrued. Property taxes may be charged to multiple expense accounts, and it is the auditor's responsibility to verify that each account has been correctly recorded. The auditor should also verify all property tax payments, not just the larger ones.

When Auditing Accrued Property Taxes