The following questions concern the audit of asset accounts in the acquisition and payment cycle. Choose the best response.

a. In testing for unrecorded retirements of equipment, an auditor most likely would

(1) select items of equipment from the accounting records and then locate them during the plant tour.

(2) inspect items of equipment observed during the plant tour and then trace them to the equipment master file.

(3) compare amortization journal entries with similar prior-year entries in search of fully amortized equipment.

(4)scan the general journal for unusual equipment additions and excessive debits to repairs and maintenance expense.

b. Which of the following is the best evidence of real estate ownership at the balance sheet date?

(1) Paid real estate tax bills

(2) Insurance policy

(3) Original deed held in the client's safe

(4) Lawyer's statement on closing

(AICPA adapted)