The auditor is concerned that the client has committed a number of errors in the capital/repair expenditures distinction. In selecting items from the repairs expense account for investigation, the most appropriate audit procedure would involve:
A) random selection.
B) systematic selection.
C) tracing.
D) scanning.

Question

Quizplus · Accepted Answer

Scanning is the most appropriate audit procedure in this context because it involves a judgmental review of the repairs expense account to identify unusual or large items that might have been incorrectly classified, which directly addresses the auditor's concern about the capital/repair expenditures distinction.

The Auditor Is Concerned That the Client Has Committed a Number