A. One substantive procedure performed by the auditor is to scan individual charges in the repairs and maintenance account and look for unusual transactions or large amounts to ensure the amount was properly expensed. This procedure provides important evidence concerning the

1. Completeness of the repairs and maintenance expense.

2. Existence of property, plant, and equipment.

3. Valuation of property, plant, and equipment.

4. Completeness of property, plant, and equipment.

B. Why will the auditor usually adopt a substantive audit strategy for property, plant, and equipment assertions?

1. Property, plant and equipment typically are subject to separate controls typically relied on and tested by the auditor.

2. Transactions are usually immaterial and numerous.

3. Individual transactions are typically material and subject to separate controls not relied on by the auditor.

4. Auditing standards require a substantive approach.