Which of the Following Accounts Would the Auditor Review in Order

question 25

Multiple Choice

Which of the following accounts would the auditor review in order to obtain reasonable assurance that additions to the equipment (fixed asset) account are not understated?

• A)Amortization expense.
• B)Gain on disposal of equipment.
• C)Accounts payable.
• D)Repairs and maintenance expense.

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Definitions:

Fixation

An obsessive focus or attachment to certain behaviors, people, or developmental stages, often hindering emotional development.

Mental Set

A cognitive tendency to approach situations in a fixed way based on previous experiences, potentially inhibiting problem-solving.

Confirmation Bias

The bias towards selecting, decoding, favoring, and reminiscing over data that corroborates one's prior beliefs or conjectures.

Perceptual Set

A tendency to perceive or notice some aspects of the available sensory data and ignore others.