Question

In testing for unrecorded retirements of equipment, an auditor might: A. Compare depreciation expense with the...

In testing for unrecorded retirements of equipment, an auditor might:

A. Compare depreciation expense with the prior year's depreciation expense.

B. Scan the general journal for unusual equipment retirements.

C. Analyze miscellaneous revenue.

D. Trace equipment items observed during the plant tour to the equipment subsidiary ledger.

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Homework Answers

Answer #1

Your required answer is option D i.e. Trace equipment items observed during the plant tour to the equipment subsidiary ledger.

Explanation:

In Testing for unrecorded retirements of equipment, an auditor should select the item of equipment of from accounting records and try to observe during the plant tour to the equipment subsidiary ledeger.

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