The auditor needs to gain reasonable assurance that the equipment accounts in the fixed asset master file are not understated.Which of the following accounts would most likely be reviewed in making that determination?
A)Depreciation expense
B)Repairs and maintenance expense
C)Gains/losses on sales and retirements
D)Cash

Question

Quizplus · Accepted Answer

Repairs and maintenance expense should be reviewed because expenses that should have been capitalized as equipment might have been incorrectly expensed, leading to an understatement of the equipment accounts.

The Auditor Needs to Gain Reasonable Assurance That the Equipment