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Why is it crucial to the integrity of the financial statements that the fixed asset department be informed of asset improvements and disposals?

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

Problem 11RQSC

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Property. Plant and Equipment (PPE) are the assets that represent a material portion of the total assets and give significant impact to the presentation in an entity's financial statements.a. What is the important of internal control of fixed asset and explain THREE (3) factors that an auditor should consider in assessing the inherent risk for PPE?
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