In violation of company policy, Lowell Company erroneously capitalized the cost of painting its warehouse. The auditors examining Lowell's financial statements would most likely detect this when:

Question

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Examining the construction work orders supporting items capitalized during the year would reveal the erroneous capitalization of painting costs, as these documents would detail the nature of the capitalized expenses.

In Violation of Company Policy, Lowell Company Erroneously Capitalized the Cost