Ramon is an audit staff associate who has been assigned to the audit of the property, plant and equipment accounts of Sterling, Inc. a supplier of luxury silverware across the United States. This is Ramon's first audit of this type of account, and so he consults his supervisor for assistance and an overview of what he might expect. Which of the following represents the most appropriate response by the supervisor?
Question 99 options:
A)
Perhaps the best way to approach the audit of these accounts is to recalculate the associated depreciation expenses first, and then trace the expenses back to the individual assets.
B)
It's usually a good idea to start with the beginning balance for the accounts, and vouch them to last year's audit records. Any additions and deletions, of which there should be few, can then be audited.
C)
A client's property, plant and equipment accounts tend to be fairly voluminous with respect to transactions, so just aim to audit a sample of transactions.
D)
None of these answer choices are correct.