In the examination of property, plant and equipment, which of the following does the auditor not try to determine?
A) The reasonableness of the depreciation.
B) The capital nature of items included in repairs and maintenance.
C) The extent of property disposed of during the year.
D) The adequacy of future replacement funds.

Question

Quizplus · Accepted Answer

The auditor does not try to determine the adequacy of future replacement funds as it goes beyond the scope of the audit of property, plant and equipment. The auditor's focus in this examination is on the accuracy and completeness of the recorded values, not on the adequacy of future plans or funds. A, B and C are all within the scope of the auditor's examination of property, plant and equipment.

In the Examination of Property, Plant and Equipment, Which of the Following