In performing a search for unrecorded retirements of fixed assets,an auditor most likely would
A)Inspect the property ledger and the insurance and tax records,and then tour the client's facilities.
B)Tour the client's facilities,and then inspect the property ledger,and the insurance and tax records.
C)Analyze the repair and maintenance account,and then tour the client's facilities.
D)Tour the client's facilities,and then analyze the repair and maintenance account.

Question

Quizplus · Accepted Answer

The most effective way to search for unrecorded retirements of fixed assets would be to start by inspecting the property ledger, insurance and tax records, and then tour the client's facilities to physically verify that the assets listed in those records are still present and in use. This method provides a comprehensive approach to identify any retirements that may have been missed or overlooked. Analyzing the repair and maintenance account alone would not be sufficient to detect unrecorded retirements.

In Performing a Search for Unrecorded Retirements of Fixed Assets,an