The auditor normally does not need to test the accuracy or classification of fixed assets recorded in prior periods if they are the continuing auditor because
A) they are rarely material to the audit.
B) they rarely contain misstatements.
C) they are verified in previous audits.
D) they don't affect the balance sheet.

Question

Quizplus · Accepted Answer

Fixed assets recorded in prior periods are typically verified in previous audits when the auditor is a continuing auditor, meaning they have audited the company in the past and have already tested these assets for accuracy and proper classification.

The Auditor Normally Does Not Need to Test the Accuracy