An Auditor Wishes to Test the Net Valuation of the Equipment

Multiple Choice

An auditor wishes to test the net valuation of the equipment in the financial statements of a client.How will the auditor best perform this testing?

A) Vouch the recorded equipment to an invoice supporting the cost of the equipment when originally purchased.
B) Compare the ID number on the fixed asset schedule to the identification tag on the asset itself.
C) Recalculate annual depreciation expense for major additions and a sample of all other equipment.
D) Confirm material equipment with customers.