Problem:
Margo and Allen are discussing their audit of a client's fixed assets one day over lunch at the client's premises. Margo tells Allen that she has spent most of the week learning about and performing tests on the client's internal controls related to property, plant and equipment. She proceeds to tell Allen that her supervisor also mentioned the client's tone at the top as a key internal control, but doesn't understand what this means, or how it would be related to the client's fixed assets. How should Allen best respond to these questions? Group of answer choices The tone at the top speaks to management's demonstrated desire to act ethically and to be seen doing the right thing. This can permeate through the organization, which may be manifested in accurate balances in property, plant and equipment accounts, as well as appropriate depreciation and related expense entries. I know that the tone at the top refers to whether or not management of the firm acts ethically, and also whether they hold others around them to the same standard. With respect to your question about fixed assets, that has to do with negotiating the original costs of those assets, and making sure