The auditor's main objectives in the verification of the sale, trade-in, or abandonment of equipment are to gather sufficient appropriate evidence that all disposals are ________ and at the ________.
A) verified; historical cost
B) recorded; correct amounts
C) accurate; proper gain or loss amount
D) classified properly; net realizable value

Question

Quizplus · Accepted Answer

The auditor aims to ensure that all disposals of equipment are properly recorded in the financial statements at the correct amounts, which includes verifying that the disposal transactions are recorded at the appropriate amounts reflecting any gains or losses.

The Auditor's Main Objectives in the Verification of the Sale