The auditors may use data analytics to help test repairs and maintenance expense for overstatement by:
A)Vouching large repair and maintenance expenditures.
B)Identifying expenditures with characteristics that indicate they are capital expenditures.
C)Identifying capital expenditures that should have been expensed.
D)Identifying expenditures for repairs and maintenance that were not performed.

Question

The auditors may use data analytics to help test repairs and maintenance expense for overstatement by:
A)Vouching  large repair and maintenance expenditures.
B)Identifying expenditures with characteristics that indicate they are capital expenditures.
C)Identifying capital expenditures that should have been expensed.
D)Identifying expenditures for repairs and maintenance that were not performed.

Quizplus · Accepted Answer

Data analytics can help identify expenditures that have characteristics of capital expenditures, which may have been incorrectly classified as repairs and maintenance, leading to overstatement of expenses.

The Auditors May Use Data Analytics to Help Test Repairs