Which of the following can be a red flag regarding property, plant, and equipment?

A red flag regarding property, plant, and equipment is that the company does not pay taxes on unowned property. This situation raises concerns because it may indicate that the company is mismanaging its asset records or misrepresenting its financial position. It could suggest that the company is not accurately recording its liabilities or is failing to recognize leases or other obligations associated with property it uses but does not own.

Proper recording and reporting of taxes related to property are critical for financial accuracy. A company should typically pay property taxes on owned assets, and not paying taxes on unowned property can imply issues within the company's accounting practices or management of assets. This can affect financial statements' reliability and lead to further scrutiny during audits, highlighting the need for more thorough investigations.

In contrast, paying taxes on owned property, having insurance for assets, and confirming possession of assets are all indicators of prudent asset management and suggest that the company is likely complying with relevant regulations and effectively managing its financial reporting.