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Delagrange CPAs are preparing to begin the first-year audit of Kearns Company, a medium-sized firm and regional provider of security and protective services in the
Delagrange CPAs are preparing to begin the first-year audit of Kearns Company, a medium-sized firm and regional provider of security and protective services in the southeastern United States. The partners of the audit firm are meeting with the client's senior management to discuss the audit of the client's property, plant and equipment accounts, in the hopes of obtaining a better understanding of this area. Which of the following represent prudent questions the audit partners should ask during the meeting? (Select all that apply.) What is the desired rate of return that the company's senior management and board of directors expect to earn on these fixed assets? What fixed assets are required by the client in order to support the client's business operations? What method of amortization or depletion is the client using for its fixed assets? What percentage of the assets are owned by the firm as opposed to being leased to other entities
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