CAF-8 · Chapter 8 · Question 3 of 10
Which of the following is NOT a substantive procedure for verifying the valuation of property, plant, and equipment (PPE)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Inspecting the director's minutes for approval of the asset purchase.
Explanation
Inspecting minutes for approval is a test of control addressing 'Authorization', not a substantive test of 'Valuation'. Recalculating depreciation and impairment testing address Valuation.
More Substantive Procedures: Non-Current Assets MCQs
- Q5Which procedure addresses the 'Completeness' assertion of non-current assets?
- Q6A client recently revalued its head office building. According to ISA 540, what is the auditor's primary responsibility regarding this…
- Q7An auditor is testing the depreciation of fully depreciated assets that are still in use. What is the correct accounting treatment for…
- Q8To verify the 'Classification' of a leased asset, the auditor must determine if it is a right-of-use asset under IFRS 16. What document…
- Q9Which of the following would lead an auditor to suspect that a non-current asset is 'Impaired'?