You are working on the financial report audit for a wholesaling company the year ended 30 June 2020. You are currently considering the audit approach for the property, plant and equipment account. The balance of the property, plant and equipment account was $325,000 at 30 June 2019. The balance at 30 June 2020 is $410,000. The materiality threshold for this client is $50,000.

You note that all property, plant and equipment has been valued based on fair value estimates. The fair value of the property, plant and equipment is heavily affected by changes in economic conditions. You note that the internal controls for this account are weak.

Required:

Explain why the internal controls are likely to be weak for the property, plant and equipment account.

Comment on whether a lower assessed level of control risk approach, or a predominantly substantive approach be more appropriate for this account.

Identify the main assertion that is likely to be at-risk for this account for this client. Explain why it is at risk.

Identify an audit procedure that would provide evidence for this assertion.