You are the internal auditor of ABC corporation and you had discussed with XYZ Firm, external auditor of the corporation, that the building the company purchased this year has a 50-year useful life. Throughout the audit and after submission of the audited financial statement to the BIR, the project management team along with the procurement department had estimated that the useful asset should be 48 years from acquisition.

Question: Did the internal auditor and external auditor fail to recognize the correct useful life and caused incorrect representation of the amounts in Property, Plant and Equipment? What would be your recommendation?