If the auditor determines that beginning balances of fixed assets have not changed from previously audited amounts,much of the testing for existence can be accomplished by which of the following?
A)sampling receiving reports.
B)inquiring of management.
C)vouching current period additions.
D)recomputing depreciation.

Question

Quizplus · Accepted Answer

Vouching current period additions allows the auditor to test whether any new fixed assets have been correctly recorded and exist. Since the beginning balances have not changed, there is no need to retest the existence of those assets. Sampling receiving reports or inquiring of management would not provide sufficient evidence of existence, and recomputing depreciation would not be relevant to testing existence.

If the Auditor Determines That Beginning Balances of Fixed Assets