In testing plant and equipment balances, an auditor may inspect new additions listed on the analysis of plant and equipment. This procedure is designed to obtain evidence concerning management's assertions about classes of transactions and events and specifically, which assertion?
A) Occurrence.
B) Cut-off.
C) Accuracy.
D) Classification.

Question

Quizplus · Accepted Answer

Inspecting new additions listed on the analysis of plant and equipment verifies that the transactions have actually occurred, supporting the occurrence assertion. This ensures that assets listed on the balance sheet truly exist and were acquired by the entity.

In Testing Plant and Equipment Balances, an Auditor May Inspect