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【单选题】
You now need to gain an understanding of Cherry’s non-current assets cycle.Which of the following statements is correct regarding audit procedures concerning the non-current asset cycle?A.
The same ordering documentation may be used in the non-current assets cycle as in the purchases cycle. If this is the case, it will not be necessary to document the non-current assets cycle.
B.
Because there are likely to be less capital purchases than standard purchases in the year, it may not be cost-efficient to undertake tests of controls.
C.
Because the control risk around the non-current asset cycle is likely to be high, it is important to perform tests of controls.
D.
The non-current assets cycle is likely to have a lower risk of material misstatement than the purchases cycle.
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