An auditor analyses the repairs and maintenance expense account primarily to obtain evidence that:
A)expenditures for property, plant and equipment have been recorded in the proper period.
B)non-capitalisable expenditures for repairs and maintenance have been recorded in the proper period.
C)expenditures for property, plant and equipment have not been charged to expenses.
D)non-capitalisable expenditures for repairs and maintenance have been properly charged to expenses.

Question

Quizplus · Accepted Answer

The auditor analyzes the repairs and maintenance expense account to ensure that expenditures for property, plant, and equipment are not incorrectly charged as expenses, which would understate assets and overstate expenses.

An Auditor Analyses the Repairs and Maintenance Expense Account Primarily