|Property, Plant, and Equipment: Depreciation and Depletion|
After studying this chapter, you should be able to:
Describe the nature of property, plant, and equipment and depreciation.
Identify the auditors' objectives in the audit of property, plant, and equipment.
Explain the fundamental controls over property, plant, and equipment.
Use the understanding of the client and its environment to consider inherent risks (including fraud risks) related to property, plant, and equipment.
Obtain an understanding of internal control over property, plant, and equipment.
Assess the risks of material misstatement of property, plant, and equipment and design further audit procedures, including tests of controls and substantive procedures, to address the risks.
Explain the auditors' approach to the audit of depreciation.
Describe how the auditors design audit procedures to audit intangible assets.