An analysis of fixed assets account has revealed possibility of unrecorded sale of plant and machine...........

Auditing Vouching and verification

An analysis of fixed assets account has revealed possibility of unrecorded sale of plant and machinery. Which of the following audit procedures may be adopted to discover it?

Examination of property tax files

Inquiry of plant manager

Examination of debits to accumulated depreciation

All of the above

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Explanation:

- Examination of property tax files: This can help identify changes in assets that might indicate a sale or disposal of fixed assets.

- Inquiry of plant manager: Speaking with the plant manager can reveal unrecorded transactions, as they are likely aware of any major asset changes.

- Examination of debits to accumulated depreciation: Reviewing these debits can uncover adjustments linked to asset sales. A decrease might signal a sale of machinery that hasn't been documented.

- All of the above: Each option touches different aspects of asset verification, offering a comprehensive approach to uncover unrecorded sales.

Correct Answer: All of the above