Which of the following situations would most likely require special audit planning by the auditor?
A) Some items of factory and office equipment do not bear identification numbers.
B) Depreciation methods used on the client's tax return differ from those used on the books.
C) Assets costing less than $500 are expensed even though the expected life exceeds one year.
D) Inventory is comprised of precious gemstones.

Question

Quizplus · Accepted Answer

Inventory comprising of precious gemstones would require special audit planning as it is a high-risk area for potential fraud, theft and valuation issues. The nature of the inventory also makes it difficult to audit and verify its existence and completeness.

Which of the Following Situations Would Most Likely Require Special