A high assessed risk of material misstatement with regard to recording retirements of equipment may cause an auditor to
Select certain items of equipment from the accounting records and locate them in the plant.
The completeness assertion about classes of transactions and events is that all transactions and events that should be recorded are recorded. Thus, the equipment account should reflect all retirement transactions as well as all additions. To test for unrecorded retirements, the auditor inspects selected items chosen from the records. However, unlike external confirmation of receivables or observation of inventories, inspection of equipment, especially a complete physical inventory, is not a required auditing procedure. However, a high assessment of the risk of material misstatement may require the auditor to inspect a sample of items.