The Statement About Audit Strategy for Property, Plant and Equipment

question 35

Multiple Choice

The statement about audit strategy for property, plant and equipment that is inaccurate is:

• A) for depreciation and accumulated depreciation inherent risk is affected by the difficulty in estimating both useful lives and residual value
• B) although material, verification of PPE typically involves significantly less time and cost than verification of current assets.
• C) unlike current asset accounts, control risk assessments for PPE asset balances are less dependent on controls over major transaction classes.
• D) none of the above statements is inaccurate

---

Definitions:

Passing Score

The minimum score required on a test or examination to be considered as having passed or achieved the required standard.

Increase Decimal

A function in spreadsheet software that allows the user to display more decimals for numerical entries, providing greater precision.

Background Color

The color filling the back area of a document, webpage, or application interface, behind all text, images, or objects.

Conditional Formatting

A feature in data visualization and spreadsheet software that changes the appearance of cells based on certain conditions, making it easier to visually assess data.