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

Question

Quizplus · Accepted Answer

When there are numerous property and equipment transactions during the year, the auditor planning to set control risk at low should obtain an understanding of internal control and perform tests of controls to assess the effectiveness of internal control. In addition, the auditor should perform limited tests of current-year property and equipment transactions to ensure that the transactions are properly recorded and classified. Extensive tests of property and equipment balances at the end of the year or analytical procedures for property and equipment balances at the end of the year may not provide sufficient evidence about the validity and completeness of current year property and equipment transactions.

When There Are Numerous Property and Equipment Transactions During the Year