Which of the following is the best example of a fixed asset that will be physically inspected by the auditor in the period under audit?
A)An adding machine acquired in the current period.
B)A warehouse purchased three years previously.
C)An office building constructed in the current period.
D)Desktop computers purchased in the previous period.

Question

Quizplus · Accepted Answer

An office building constructed in the current period is a fixed asset that would likely require a physical inspection by the auditor to verify its existence and valuation. The adding machine (A) is a small asset that may not require physical inspection as its value is relatively small, while the warehouse purchased three years previously (B) may not require a physical inspection if it has been previously verified and there have been no changes to its condition. Desktop computers purchased in the previous period (D) may also not require a physical inspection if they have been verified in a prior period and there have been no changes to their condition or value.

Which of the Following Is the Best Example of a Fixed