The document that would normally be used by the auditor to recalculate the total disclosed as the carrying balance of property, plant and equipment in the financial statements is A. A fixed asset register.

Here's why:

A. A fixed asset register - This is a ledger that keeps track of the fixed assets a company owns. It includes information such as the cost of the asset, its useful life, and its accumulated depreciation. Auditors can use this to verify the carrying amount of property, plant, and equipment disclosed in the financial statements.

B. The memorandum of incorporation - This is a document that sets out the rights, duties, and responsibilities of shareholders, directors, and others within a company. It does not contain detailed information about the company's assets.

C. A capital budget - This is a budget that outlines a company's plans for investing in long-term assets. While it might include plans for acquiring property, plant, and equipment, it would not provide the detailed, up-to-date information an auditor would need to verify the carrying amount of these assets.

D. A certificate of registration - This is a document that proves a company is legally registered to do business. It does not contain information about the company's assets.

Question

The document that would normally be used by the auditor to recalculate the total disclosed as the carrying balance of property, plant and equipment in the financial statements is A. A fixed asset register.

Here's why:

A. A fixed asset register - This is a ledger that keeps track of the fixed assets a company owns. It includes information such as the cost of the asset, its useful life, and its accumulated depreciation. Auditors can use this to verify the carrying amount of property, plant, and equipment disclosed in the financial statements.

B. The memorandum of incorporation - This is a document that sets out the rights, duties, and responsibilities of shareholders, directors, and others within a company. It does not contain detailed information about the company's assets.

C. A capital budget - This is a budget that outlines a company's plans for investing in long-term assets. While it might include plans for acquiring property, plant, and equipment, it would not provide the detailed, up-to-date information an auditor would need to verify the carrying amount of these assets.

D. A certificate of registration - This is a document that proves a company is legally registered to do business. It does not contain information about the company's assets.

Knowee AI · Accepted Answer

The document that would normally be used by the auditor to recalculate the total disclosed as the carrying balance of property, plant and equipment in the financial statements is A. A fixed asset register.

Here's why:

A. A fixed asset register - This is a ledger that keeps track of the fixed assets a company owns. It includes information such as the cost of the asset, its useful life, and its accumulated depreciation. Auditors can use this to verify the carrying amount of property, plant, and equipment disclosed in the financial statements.

B. The memorandum of incorporation - This is a document that sets out the rights, duties, and responsibilities of shareholders, directors, and others within a company. It does not contain detailed information about the company's assets.

C. A capital budget - This is a budget that outlines a company's plans for investing in long-term assets. While it might include plans for acquiring property, plant, and equipment, it would not provide the detailed, up-to-date information an auditor would need to verify the carrying amount of these assets.

D. A certificate of registration - This is a document that proves a company is legally registered to do business. It does not contain information about the company's assets.

Question

Solution

Similar Questions

Upgrade your grade with Knowee