In violation of company policy, Miller Company erroneously capitalized the cost of painting its warehouse. The auditors examining Miller's financial statements would most likely detect this when:
A. Observing, during the physical inventory observation, that the warehouse had been painted.
B. Examining maintenance expense accounts.
C. Discussing capitalization policies with Miller's controller.
D. Examining the construction work orders supporting items capitalized during the year.
Answer: D
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Answer the following statement true (T) or false (F)
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