The auditor is least likely to discover unrecorded retirements of property, plant and equipment assets by
A) analyzing the miscellaneous revenue account.
B) investigating the disposition of facilities associated with discontinued product lines.
C) selecting retirement work orders from the accounting records and verifying their accuracy.
D) reviewing insurance policies for termination or reductions of coverage.

Question

Quizplus · Accepted Answer

Selecting retirement work orders from the accounting records and verifying their accuracy is a direct method to identify recorded retirements, making it less likely to uncover unrecorded retirements compared to the other options which indirectly might indicate unrecorded retirements.

The Auditor Is Least Likely to Discover Unrecorded Retirements of Property