An auditor analyzes repairs and maintenance accounts primarily to obtain evidence in support of the audit assertion that all:

Question

Quizplus · Accepted Answer

Choice "D" is correct. Analysis of repairs and maintenance expense provides assurance with regard to management's assertion that expenditures for property and equipment have been capitalized and have not been charged to expense. Choice "A" is incorrect. Analysis of repairs and maintenance accounts provides limited evidence about the appropriate cutoff of transactions for the period. Choice "B" is incorrect. Analysis of repairs and maintenance accounts does not provide evidence about the appropriate cutoff of expenditures for property and equipment. Choice "C" is incorrect. Analysis of capitalized expenditures might help identify noncapitalizable expenditures, which were capitalized erroneously.

An Auditor Analyzes Repairs and Maintenance Accounts Primarily to Obtain