In performing a search for unrecorded retirements of fixed assets, an auditor most likely would
A)inspect the property ledger and the insurance and tax records, and then tour the client's facilities.
B)tour the client's facilities, and then inspect the property ledger, and the insurance and tax records.
C)analyze the repair and maintenance account, and then tour the client's facilities.
D)tour the client's facilities, and then analyze the repair and maintenance account.

Question

Quizplus · Accepted Answer

Inspecting the property ledger and the insurance and tax records would provide information on the assets that are still on the books, while touring the client's facilities would allow the auditor to physically observe whether any assets are missing or have been retired. Analyzing the repair and maintenance account alone may not provide enough evidence regarding retirements of fixed assets.

In Performing a Search for Unrecorded Retirements of Fixed Assets