You

Mayfair Construction is a new client of yours. One objective of the auditor is to evaluate information to be used as audit evidence, including the results of testing controls and audit procedures to test dollars, to inform the auditor's overall conclusion about whether sufficient, appropriate audit evidence has been obtained for this new client in order to render an audit opinion.

Mayfair operates vehicles and machinery used in construction, farming, railways, and road transportation. Its equipment includes surface mining equipment, such as bulldozers, cranes, graders, and excavators. Mayfair Construction Equipment Ca$.$ has not yet implemented many of the newer technologies used in this field. But the company is stable and has been around for $50$ years.

You have been assigned to audit its Heavy Equipment account that has a balance of $$7,000,000.$ This balance represents $200$ pieces of equipment. The Accumulated Depreciation account has a balance of $$2,000,000$ and the Depreciation Expense for this year has a balance of $$600,000.$ You are trying to prove that this $$7,000,000$ really does physically exist.

C$)$ Determane Your Detection Risk for this client.