When auditing acquisitions of property, plant, and equipment, the auditor's review of lease and rental agreements most closely relate to the cutoff objective.

Question

Quizplus · Accepted Answer

The auditor's review of lease and rental agreements most closely relates to the classification and understandability objective, ensuring transactions are recorded in the correct accounting period and properly classified in the financial statements. The cutoff objective specifically deals with ensuring transactions and events have been recorded in the correct accounting period.

When Auditing Acquisitions of Property, Plant, and Equipment, the Auditor's