Question 1
Normally it may be unnecessary to examine supporting documentation for each addition to property, plant, and equipment, but it would be customary to verify
◦ all large transactions.
◦ all unusual transactions.
◦ a representative sample of typical additions.
◦ All of these.
Question 2
One of the primary objectives in examining the repairs and maintenance accounts is to obtain evidence that
◦ expenditures of equipment have not been charged to expense.
◦ the actual amount recorded is the same as the budgeted amount.
◦ expenditures for equipment have been recorded in the proper period.
◦ revenue expenditures made on behalf of equipment have been recorded in the proper period.