Which of the following combinations of procedures would an auditor most likely perform to obtain evidence about fixed asset additions?

Question

Quizplus · Accepted Answer

Choice "A" is correct. In order to obtain evidence about fixed asset additions, an auditor would most likely inspect documents (e.g., purchase invoices) and physically examine the new assets. Choice "B" is incorrect. Recomputing calculations might provide evidence about depreciation, and obtaining management representations might provide evidence about commitments with respect to fixed assets, but neither procedure provides specific evidence about fixed asset additions. Choice "C" is incorrect. Observing operating activities and comparing balances to prior years might provide evidence that depreciation expense was properly recorded, but does not provide evidence supporting additions. Choice "D" is incorrect. Inquiry alone is not as persuasive as direct personal observation.

Which of the Following Combinations of Procedures Would an Auditor