The following misstatements could occur in the property and equipment, investments, goodwill, long-term debt, and equity accounts. Describe an audit procedure that provides reasonable assurance of detecting each misstatement.

a. A repair expense is properly capitalized as property and equipment.

b. Goodwill is improperly recorded in a pooling-of-interest transaction.

c. Borrowings are made from a bank but are recorded as revenue rather than long-term debt.

d. The president of a nonpublic company improperly issues himself 100,000 shares of the company's common stock.

e. An item of property is improperly charged to repairs and maintenance.

f. A 20 -year franchise agreement to operate a McDonalds restaurant is amortized over 30 years.
g. A company fails to accrue interest on one of its notes payable.
h. A company's financial statements fail to disclose that retained earnings are restricted as to payment of dividends because of a provision in a debt agreement.
i. A company fails to record depreciation on certain of its assets.
j. A subsidiary was purchased three years ago in a transaction that resulted in recording goodwill which is amortized over the maximum allowable period. The subsidiary has incurred losses every year since it was acquired and may not be able to continue in existence.
k. Notes payable due within one year are classified as long-term debt.
I. Dividends on treasury stock are recorded as investment income.
m. An old truck is traded in for a new truck, and the new truck is recorded at cost less tradein value. The cost of the old truck is not removed from the property and equipment account.
n. The cost of public relations work done to create customer satisfaction is recorded as goodwill.
o. The financial statements show one million shares of common stock are authorized and outstanding when actually two million shares are authorized and outstanding.
p. The financial statements fail to disclose the existence of a stock option plan.
q. One thousand shares of \(\$ 100\) par value preferred stock in a nonpublic company are issued for a patent worth \(\$ 50,000\) and are recorded at \(\$ 100,000\).
r. The treasurer removes the coupons from \(\$ 1\) million of bearer bonds and cashes them herself.
s. Dividends of \(\$ 35,000\) are received on investments in common stock, but only \(\$ 25,000\) is deposited and recorded.
t. The dividends from an investment in a 35 percent-owned subsidiary are recorded as dividend income.
u. An investment is written off as worthless by the treasurer who then sells the securities and keeps the proceeds.
v. Securities are removed from the safe deposit box by the treasurer and misappropriated; forged securities are substituted to conceal the theft.