An auditor is reviewing the 'Repair and Maintenance' expense account. The primary objective of this procedure is to obtain evidence regarding which assertion for Property, Plant, and Equipment (PPE)?

Answer options:

Existence

Valuation

Completeness

Rights and Obligations

How to approach this question

Think: Why look at expenses? To see if an Asset is hiding there. If an asset is in expenses, the Asset account is incomplete.

Full Answer

C.Completeness✓ Correct

Completeness

Reviewing repairs and maintenance is a standard search for unrecorded additions. If a capital improvement was expensed, PPE is understated (Completeness assertion).

Common mistakes

Thinking this tests the expense account itself (it does, but the primary link to PPE is completeness).

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