ACCA Audit and Assurance (F8) Practice Exam 2025 – The Complete All-in-One Guide to Achieve Exam Success

Agreeing revalued amounts to valuation statements is a critical audit test specifically for land and buildings because it directly addresses the accuracy and appropriateness of the asset values recorded in the financial statements. This process involves obtaining independent valuation reports from qualified valuers or appraisers and ensuring that the amounts reflected in the accounts correspond with these professional evaluations.

This audit test is essential for several reasons. First, it helps to verify that the reported revaluations of land and buildings comply with applicable accounting standards, which often require regular valuation of such long-lived assets. It also assesses whether the revaluation reflects fair market value, thereby providing assurance that the asset base is not overstated or understated. This increases the confidence of stakeholders in the financial statements.

The other options, while relevant in certain contexts, do not directly serve the purpose of verifying the recorded values of land and buildings as effectively as agreeing the revalued amounts to valuation statements. For instance, reviewing production costs against budgets pertains more to operational performance rather than asset valuation, comparing land values with market trends provides context but does not ensure the accuracy of reported values, and inspecting maintenance records focuses on operational compliance rather than financial accuracy.