With respect to property, plant, and equipment, in the first audit engagement, evidence
must be obtained as to the fairness of the opening balances and the ownership of the assets
making up the balances, whereas in a recurring engagement, the auditor concentrates on
the current year's transactions.

Question

Quizplus · Accepted Answer

In a first audit engagement, the auditor must obtain evidence regarding the opening balances of property, plant, and equipment to ensure they are fairly stated and owned by the company. In a recurring engagement, the focus is on the current year's transactions related to property, plant, and equipment.

With Respect to Property, Plant, and Equipment, in the First