Olivia, your staff auditor will be performing a test for unrecorded retirements of forklifts at year$-$end. How will you instruct Olivia to conduct this test?

Select forklifts from the detailed listing of equipment recorded and go to the plant to see if those forklifts are in use.

Test whether the client has followed the capitalization policy during the year.

Select forklifts while in the plant and verify that the forklifts are in the detailed listing of equipment recorded at year$-$end.

Recalculate depreciation expense for the year.