In an interview with the plant manager regarding operations, the auditor is most likely to obtain evidence that raises concerns regarding:
A)the capitalization vs. expensing policy.
B)the allocation of fixed and variable costs.
C)the need to write off equipment that has become obsolete.
D)the adequacy of depreciation expense.

Question

Quizplus · Accepted Answer

During an interview with the plant manager, the auditor is more likely to uncover concerns about the need to write off equipment that has become obsolete. This is because plant managers are directly involved with the day-to-day operations and are more likely to be aware of the current status and usability of the equipment, including which items are no longer useful or have become obsolete.

In an Interview with the Plant Manager Regarding Operations, the Auditor