Which of the following is a common substantive test of the valuation assertion for PPE and intangible assets?
A)Observe physical inventory taking of the fixed assets and compare with detailed asset records.
B)For property valued at fair value,examine and verify supporting valuation evidence,such as independent appraisals.
C)Recalculate amortization expense and trace to general ledger account(s).
D)From a sample of items from the asset subsidiary records,inspect title or other ownership legal documents,

Question

Quizplus · Accepted Answer

A common substantive test of the valuation assertion for PPE and intangible assets is to examine and verify supporting valuation evidence, such as independent appraisals, for property that is valued at fair value. This helps ensure that the assets are recorded on the balance sheet at their appropriate values. The other options listed are also common substantive tests for PPE and intangible assets, but they are not specifically related to the valuation assertion.

Which of the Following Is a Common Substantive Test of the Valuation