1. 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?

a. 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.

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. 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.

d. None of these answer choices are correct

. 2. Celina is currently working on the audit of a client's property, plant and equipment accounts, and has turned her attention to asset retirements and disposals. Celina asks her supervisor what specifically she should look for in these areas. Which of the following represents the supervisor's most appropriate response?

a. Make sure that for asset retirements and disposals, you check to make sure there is a proportionate decrease in interest expense related to long-term debt that was used to purchase these assets

. b. Check to make sure that for assets that were sold, the appropriate gains and losses are recorded correctly on the client's balance sheet

. c. Pay attention to make sure that for each retirement and disposal, the appropriate asset and accumulated depreciation accounts have been debited and credited respectively.

d. For each asset retirement and disposal, you should check to ensure that asset and accumulated depreciation accounts have been closed properly.