A balance-related audit objective in property, plant, and equipment includes the proper classification of these assets on the balance sheets. The auditor should therefore examine vendors' invoices in various property, plant, and equipment accounts to ensure that such invoices are classified, properly, as building, manufacturing, office equipment, or repairs.

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Quizplus · Accepted Answer

This statement is true. The proper classification of property, plant, and equipment assets on the balance sheet is a balance-related audit objective. The auditor should examine invoices to ensure that they are correctly classified in the appropriate accounts.

A Balance-Related Audit Objective in Property, Plant, and Equipment Includes