Which of the Following Statements About the Audit of Fixed

question 110

Multiple Choice

Which of the following statements about the audit of fixed assets is the least correct?

• A) The primary accounting record for manufacturing equipment and other property, plant and equipment is generally a fixed asset master file.
• B) Manufacturing equipment and current assets are normally audited in the same fashion regardless of the activity within a particular account.
• C) The emphasis on auditing fixed assets is on verification of current-period acquisitions.
• D) Failure to record the acquisition of a fixed asset affects the income statement until the assets are fully depreciated.

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Definitions:

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