You are auditing a company that extracts rare earth minerals from sand deposits on a beach adjacent to the Indian Ocean. Sands are transported from the beach to the processing plant in large mining trucks. Once the rare earth minerals are extracted from the sands, the remaining sand is driven back to the beach and dumped into the ocean just below the breaker line. This helps redistribute the sand evenly and washes the trucks. The company depreciates the trucks over five years. This is consistent with average expected life of the trucks used for mining. With regards to the trucks, what do you think the assertion most at risk would be as the scenario is described?

Question

Quizplus · Accepted Answer

The Answer is C

You Are Auditing a Company That Extracts Rare Earth Minerals