ICAEW ARF · Chapter 7 · Question 8 of 11
An auditor reviews the repairs and maintenance expense account for items that should have been capitalised as property, plant and equipment. Which assertion about property, plant and equipment does this mainly test?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Completeness
Explanation
If capital expenditure has been charged wrongly to repairs, property, plant and equipment will be understated. Searching the expense account for such items therefore tests whether all assets have been recorded. Existence would be tested by inspecting assets on the register, and rights by examining ownership documents.
More Assertions and audit evidence MCQs
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