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 steps primarily tests which of the following assertions for the equipment account?
A)existence assertion.
B)presentation assertion.
C)rights assertion.
D)valuation assertion.

Question

Quizplus · Accepted Answer

This audit step primarily tests the valuation assertion of the equipment account by re-computing gain or loss on disposal. It verifies whether the assets were recorded at their proper value at the time of disposal.

The Auditor Selects a Sample of Asset Disposals and Examines