When performing an audit of the property,plant,and equipment accounts,an auditor should expect which of the following to be most likely to indicate a departure from generally accepted accounting principles?

Question

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Capitalizing repairs to equipment is a departure from generally accepted accounting principles, as repairs are generally considered to be maintenance expenses that should be expensed as incurred. Capitalizing repairs can artificially inflate the value of the assets and lead to overstatement of net income and assets. B is a common practice when constructing assets, C is a standard business practice, and D is an appropriate capitalization of costs related to the acquisition of an asset.

When Performing an Audit of the Property,plant,and Equipment Accounts,an Auditor