The starting point for the verification of current year acquisitions of property, plant and equipment is normally:
A) the acquisitions journal.
B) the purchase requisitions file.
C) a schedule obtained from the client of all acquisitions recorded in the general ledger during the year.
D) the property, plant and equipment account in the general ledger.

Question

Quizplus · Accepted Answer

A schedule obtained from the client of all acquisitions recorded in the general ledger during the year is the best starting point for verification of current year acquisitions of property, plant and equipment as it provides a comprehensive list of all the acquisitions recorded in the books of the client during the year. The acquisitions journal and purchase requisitions file only record the purchase of assets and may not provide complete information on acquisitions recorded in the general ledger. The property, plant and equipment account in the general ledger provides an overview of the balances of the assets but does not provide complete details of the individual acquisitions during the year.

The Starting Point for the Verification of Current Year Acquisitions