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.
Choose the best answer.
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