Certified Internal Auditor (CIA) Practice Test

Which feature is deemed unnecessary for a working paper related to maintenance costs?

1. Initialed and dated by the auditor upon completion.

2. Total repair expense for the preceding month.

3. Chief audit executive's initials as reviewer.

4. Total acquisition cost of property shown.

The correct answer is: Total acquisition cost of property shown.

A working paper's purpose is to document and support the auditor's findings and conclusions related to an audit engagement. Each feature of a working paper should serve a specific function that aligns with the audit objectives. The total acquisition cost of property does not directly pertain to the maintenance costs being audited. Maintenance costs refer to the ongoing expenses incurred to keep an asset in operational condition, whereas total acquisition costs typically encompass the purchase price, taxes, and additional costs related to acquiring the asset. Therefore, including the total acquisition cost does not add value or relevance when assessing maintenance costs and can be considered unnecessary. In contrast, initialing and dating by the auditor upon completion, the chief audit executive's initials as a reviewer, and the total repair expense for the preceding month are all essential features. They help ensure accountability, provide a clear audit trail, and offer specificity that aids in evaluating the effectiveness and appropriateness of reported maintenance costs. These features contribute to the meaningfulness and reliability of the working paper in the context of the audit.