Final answer:
In testing plant and equipment for new additions, an auditor seeks evidence for the existence and presentation assertions to confirm that the assets actually exist and are properly reported and described in financial statements.
Step-by-step explanation:
When inspecting new additions listed on the analysis of plant and equipment in an audit, the auditor aims to obtain evidence for both the existence and presentation assertions. Option A. both presentation and existence is correct. The existence assertion involves verifying that the assets listed do indeed exist and are owned by the entity. The presentation assertion involves checking that these assets are properly classified and described and that related obligations are appropriately recorded.
The auditor will typically inspect invoices, purchase orders, or other supporting documentation for new additions to confirm their existence. They may also physically inspect the assets to ensure that they correspond to what is reflected in the accounting records. Furthermore, for presentation, the auditor will review how the asset is recognized in the financial statements, including any related depreciation and how it is disclosed according to the applicable financial reporting framework.