When an auditor develops a business-based approach to auditing property, plant and equipment, _______.

Question

Quizplus · Accepted Answer

When developing a business-based approach to auditing property, plant and equipment, it is essential to understand how the long-term assets support the operations of the entity. This understanding is necessary to determine the value and usefulness of the assets, assess the risk of impairment, and ensure the proper accounting treatment of the assets. The auditor is not responsible for making recommendations on which assets to sell or finding buyers for the client's assets.

When an Auditor Develops a Business-Based Approach to Auditing Property