Which of these is not true regarding substantive procedurfor property, plant, and equipment in an initial audit:
A) the auditor concentrates on the current year's transactions only
B) evidence must be obtained as to the fairness of the opening balances.
C) evidence must be obtained as to the ownership of the assets.
D) all of the above are untrue.

Question

Quizplus · Accepted Answer

In an initial audit, the auditor must obtain evidence not only about the current year's transactions but also about the opening balances. Therefore, option A is untrue. The auditor must also obtain evidence about the ownership of the assets. So, option C is also untrue. Thus, the correct answer is option A.

Which of These Is Not True Regarding Substantive Procedurfor Property