An inexperienced auditor verified the computation of depreciation on a machine, but did not actually see the machine.The auditor's actions led to a weakness in the ___ generic step of a financial statement audit.
A)Second
B)Third
C)Fourth
D)Fifth

Question

Quizplus · Accepted Answer

The fourth generic step of a financial statement audit involves gathering evidence. By not physically inspecting the machine, the auditor failed to gather sufficient appropriate audit evidence to support the depreciation computation, which is a key aspect of this step.

An Inexperienced Auditor Verified the Computation of Depreciation on a Machine