In the audit of equipment and related accounts, verifying that the ending balances are properly classified and are adequately disclosed in the financial statements is one of the tests the auditor must perform.

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This statement is true. The auditor must ensure that the ending balances of equipment and related accounts are appropriately classified and disclosed in the financial statements in accordance with the applicable accounting standards and principles. This is part of the auditor's responsibility to evaluate the presentation and disclosure of the financial statements, as well as their overall accuracy and reliability.

In the Audit of Equipment and Related Accounts, Verifying That