The program found below has been prepared for the audit of accrued real estate taxes of a client that pays taxes on 25 different pieces of property, some of which have been acquired in the current year.

Requirements

a. State the purpose of each procedure.

b. Evaluate the adequacy of the audit program.

Procedure		Purpose of each procedure
1.	Obtain a schedule of accrued taxes from the client and tie the total to the general ledger.
2.	Compare the charges for annual tax payments with property tax assessment bills.
3.	Recompute accrued/prepaid amounts for all bills on the basis of the portion of the year expired.

Part 2

Requirement b. Evaluate the adequacy of the audit program.

Procedure		Adequacy of Audit Program
1.	Obtain a schedule of accrued taxes from the client and tie the total to the general ledger.
2.	Compare the charges for annual tax payments with property tax assessment bills.
3.	Recompute accrued/prepaid amounts for all bills on the basis of the portion of the year expired.