What audit procedure is most likely to detect the incorrect capitalisation of an expense to fixed assets?

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What audit procedure is most likely to detect the incorrect capitalisation of an expense to fixed assets?

(a) Checking a sample of repairs and maintenance expenses to supporting documentation.

(b) Selecting a sample of additions to fixed assets, and ensuring that they have adequate supporting documentation.

(c) Discussing the capitalisation policy with the manager.

(d) Selecting a sample of large assets, and sighting them.

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Modern Auditing

ISBN: 9780471230113

1st Edition

Authors: Graham Cosserat

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