In testing plant and equipment balances, an auditor may inspect new additions listed on the analysis of plant and equipment. This procedure is designed to obtain evidence concerning management's assertion(s)about:

Question

Quizplus · Accepted Answer

Inspecting new additions to plant and equipment primarily provides evidence regarding the existence assertion, as it helps verify that these assets actually exist at the time of the audit.

In Testing Plant and Equipment Balances, an Auditor May Inspect