If a company has only a few long-lived assets of relatively high value,the most efficient approach for an auditor would be to use tests of details for obtaining evidence.

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When a company has only a few long-lived assets of relatively high value, using tests of details would be the most efficient approach for an auditor to obtain evidence. This is because the auditors can focus their testing efforts on specific accounts and transactions, rather than performing a more extensive approach such as substantive analytical procedures. Tests of details involve examining individual transactions and balances in detail, providing a higher level of assurance regarding the accuracy of the financial statements.

If a Company Has Only a Few Long-Lived Assets of Relatively