Error or Fraud Audit Procedure 1. A machine was sold for cash which was recorded, but the retirement was not recorded. 2. The cost of repairing a machine was improperly capitalized. 3. A purchase prior to year-end was improperly recorded in the following year. 4. An expenditure for equipment was improperly expensed. 5. Land was exchanged for a long-term note receivable, but the exchange was not recorded