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 listed on the analysis of plant and equipment helps the auditor to obtain evidence about the existence or occurrence of the assets. It confirms whether the new assets have been properly recorded in the balance sheet, and whether the purchase or acquisition of the assets actually occurred. It does not directly provide evidence concerning presentation and disclosure, as this would require additional procedures to be performed, such as reviewing the notes to the financial statements or comparing the disclosures with the relevant accounting standards. Therefore, choice B is the best answer.

In Testing Plant and Equipment Balances,an Auditor May Inspect New