As existence of property, plant, and equipment is the key audit assertion, the auditor
does not need to obtain evidence of sales, disposals, and trade-ins.

Question

Quizplus · Accepted Answer

The assertion of existence of property, plant, and equipment does not negate the need for the auditor to obtain evidence of sales, disposals, and trade-ins. The auditor needs to ensure that any disposals or sales have been properly recorded in the financial statements, and that any proceeds or losses have been accurately recorded. Therefore, the auditor should obtain sufficient and appropriate evidence of these transactions.

As Existence of Property, Plant, and Equipment Is the Key