Millie and Catherine have convened a meeting to discuss the upcoming audit of a client's property, plant and equipment accounts. Theclient is a large, decentralized entity, so the pair wants to make sure they are as thorough as possible during the audit of this area.Millie has recently joined the firm after graduating college, and asks Catherine to explain some factors and events that might cause theclient's property, plant and equipment accounts to decrease. Which of the following is Catherine's best response to this question? O Itis feasible that during this past year, the client has depreciated its property, plant and equipment at a higher rate than inprior years. If we ascertain that this is the case, then we need to propose correcting entries to adjust the accounts to theircorrect balances. O ltis possible that the client has retired certain fixed assets, but has not removed them from the general ledger. This isproblematic because it causes a subsequent understatement of fixed assets and overstatement of depreciation expense. O During the last year, the client may have decided to retire fixed assets, or perhaps just dispose of them. The client may havesold them to a third party, which would have implications for gain and loss accounts that we would also want to check. O There are various factors that may cause these accounts to decrease. For example, asset acquisitions and retirements aretwo such factors that would cause us to check to ensure these assets have been removed from the clients' general ledger.