Arrange the steps for verification and valuation of furniture and fixtures by an auditor: A. Ensure…
When verifying and valuing furniture and fixtures, an auditor first verifies current-period acquisitions against purchase invoices (C), checks that details are properly…
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Arrange the steps for verification and valuation of furniture and fixtures by an auditor:
A. Ensure that the amount and rate of depreciation charged on different items is based on fair estimate of their working life
B. Check that repair to furniture, if any, during the current year is debited to Profit and Loss Account
C. Verify with reference to the purchase invoice in case the assets have been acquired during the current accounting period
D. See that payment made on account of purchases of any item of furniture and fixture is through the invoices of the suppliers
E. Check that a stock register is maintained containing the details of the various items purchased
Answer and explanation
Correct answer A
When verifying and valuing furniture and fixtures, an auditor first verifies current-period acquisitions against purchase invoices (C), checks that details are properly recorded in the fixed asset/stock register (E), ensures that depreciation is charged based on a fair estimate of useful working life (A), verifies that revenue repairs are debited to the Profit and Loss Account (B), and confirms supplier payments against invoices (D).
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UGC NET Commerce