The first-time audit of a company with property,plant,and equipment may cause the auditor to do which of the following?
A)request a complete physical inventory of the certain items in the account.
B)start fresh with an audit as of the end of the period.
C)send a confirmation to a sample of equipment suppliers.
D)review original invoices of immaterial equipment purchased during the period.

Question

Quizplus · Accepted Answer

A complete physical inventory is necessary in the first-time audit of property, plant, and equipment to ensure that all assets are properly recorded and accounted for. It provides evidence to support the existence and completeness assertions for the account.

The First-Time Audit of a Company with Property,plant,and Equipment May