For which of the following ledger accounts would the auditor be most likely to analyze the details to identify understatements of equipment acquisitions?
A)Service Revenue.
B)Sales.
C)Repairs and maintenance expense.
D)Sales salaries expense.

Question

Quizplus · Accepted Answer

The repairs and maintenance expense account would not include equipment acquisitions, so the auditor would need to analyze the details within this account to identify any understatements of equipment acquisitions. Service revenue, sales, and sales salaries expense accounts are not relevant to identifying equipment acquisitions.

For Which of the Following Ledger Accounts Would the Auditor