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 for the client's tax return differ from those used for the accounting records.
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 comprised of precious gemstones is a highly specialized area and requires special audit planning due to the high value and unique characteristics of the inventory. The auditor may need to engage a specialist to help with the valuation and testing of the inventory. The other situations may also require some attention, but not to the same extent as inventory of precious gemstones.

Which of the Following Situations Would Most Likely Require Special