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What is the relationship between the audit of property, plant and equipment accounts and the audit of repair and maintenance accounts?

Explain how the auditor organizes the audit to take this relationship into consideration.

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Question added by Deleted user
Date Posted: 2014/08/15
Imran Adwani
by Imran Adwani , Head of Internal Audit , Abdulla Bin Zayed Investment Group

There is a direct relationship involved between the audit of PPE & its related repairs & maintenance accounts since there is a possibility that capital expenditure was wrongly classified as revenue and vice-versa.

While auditing these accounts, the auditor will scrutinize its GL in order to prevent material mis-statement in the preparation of the entity's financial statement for the period under audit.

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