When the auditor receives the client-prepared schedules for property, plant and equipment assets, in order to determine that they booked the adjustments proposed by the auditor at the conclusion of the prior audit, the auditor should:
A) inquire of management.
B) examine the general journal for the first month of the current year.
C) inquire of accounting personnel.
D) compare beginning balances with prior year's working papers.

Question

Quizplus · Accepted Answer

Comparing the beginning balances with the prior year's working papers allows the auditor to directly verify whether the adjustments proposed at the conclusion of the prior audit were actually made. This method provides a clear and direct way to check for the adjustments in the financial records.

When the Auditor Receives the Client-Prepared Schedules for Property, Plant