The Statement About Audit Strategy for Property, Plant and Equipment

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