The auditor selects a sample of asset disposals and examines the sales documentation evidencing disposal of the equipment and recomputes gain or loss on the disposal.This audit procedure primarily tests which of the following assertions for the equipment account?
A)Existence.
B)Presentation and disclosure.
C)Rights.
D)Valuation.

Question

Quizplus · Accepted Answer

This audit procedure primarily tests the valuation assertion for the equipment account by recomputing gain or loss on disposal. This ensures that the equipment was recorded at its correct value at the time of disposal.

The Auditor Selects a Sample of Asset Disposals and Examines