When verifying current-year additions to manufacturing equipment,the two major objectives for this part of the audit are
A)accuracy and classification.
B)detail tie-in and cutoff.
C)disclosure and completeness.
D)rights and existence.

Question

Quizplus · Accepted Answer

When verifying current-year additions to manufacturing equipment, the two major objectives for this part of the audit are accuracy and classification. Accuracy involves verifying that the amounts in the accounting records match the actual costs of acquiring and installing the equipment. Classification involves ensuring that the costs are properly classified as manufacturing equipment, rather than as repairs and maintenance expenses or some other category.

When Verifying Current-Year Additions to Manufacturing Equipment,the Two Major Objectives