Which is NOT a type of fixed asset register testing?

Which is NOT a type of fixed asset register testing?

• A. Trace sample of assets from register to physical asset for existence
• B. Review expense accounts for capital items
• C. Cast cost, depreciation and NBV columns
• D. Check physical condition of asset and remaining useful life

Answer: (B)

In fixed asset register testing, you verify that assets listed actually exist, are correctly valued, and are appropriately reported for depreciation and condition. Tracing a sample of assets from the register to the physical asset confirms existence. Recalculating the cost, depreciation, and net book value ensures the numbers in the register are accurate. Checking the physical condition and remaining useful life helps validate depreciation assumptions and potential impairment, supporting reliable valuation and reporting. The item that is not a fixed asset register test addresses whether expenditures were capitalized or expensed, which relates to capitalization policies rather than directly testing the contents and calculations of the fixed asset register itself.

In fixed asset register testing, you verify that assets listed actually exist, are correctly valued, and are appropriately reported for depreciation and condition. Tracing a sample of assets from the register to the physical asset confirms existence. Recalculating the cost, depreciation, and net book value ensures the numbers in the register are accurate. Checking the physical condition and remaining useful life helps validate depreciation assumptions and potential impairment, supporting reliable valuation and reporting.

The item that is not a fixed asset register test addresses whether expenditures were capitalized or expensed, which relates to capitalization policies rather than directly testing the contents and calculations of the fixed asset register itself.