Auditors verify and emphasize current additions of equipment. Which of the following is not a reason for this verification and emphasis?
A) The amount of any given acquisition is often material.
B) The equipment is likely to be kept and maintained in the accounting records for several years.
C) There are usually fewer current period acquisitions of equipment, especially large equipment used in manufacturing.
D) The balance carried forward in the equipment account from the previous year is important.

Question

Quizplus · Accepted Answer

The balance carried forward in the equipment account from the previous year is not a reason for verifying and emphasizing current additions of equipment. The focus is on the current acquisitions made during the period being audited.

Auditors Verify and Emphasize Current Additions of Equipment