When there are numerous property and equipment transactions during the year,an auditor planning to set control risk at the minimum level usually plans to obtain an understanding of internal control and to perform

Question

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When there are numerous property and equipment transactions during the year, planning to set control risk at the minimum level usually involves obtaining an understanding of internal control and performing tests of controls and limited tests of current year property and equipment transactions. This approach allows the auditor to assess the effectiveness of internal controls and the validity of the property and equipment balances without conducting extensive testing that could be time-consuming and costly. Analytical procedures can also be used, but they may not be sufficient on their own to provide the necessary level of assurance. Extensive testing of current year property and equipment transactions may also be necessary in certain circumstances, but it is not typically the first choice when setting control risk at the minimum level.

When There Are Numerous Property and Equipment Transactions During the Year,an