Professional Documents
Culture Documents
ASSERTIONS
Receiving reports
Applicable customs or excise documents
Invoice
Title deeds
Work-order records
Installation Certification
Completion Certificates
Assets acquired for exhange of a non-monetary asset: Verify with reference to supporting document for the commercial substance of the transaction (cash flows from the assets acquired against assets given up) and the value of the asset given up.
Disposal of assets: Vouch a sample of disposals selected from the disposals schedule.
Leased assets: Examine lease agreements entered into by the entity. Fully depreciated assets: Examine plant ledger for fully depreciated assets. Inquire for status. If no longer in use, or disposed of, an entry is needed to remove these.
Examine evidence of legal ownership. Vendors invoice Property tax bills Purchase documents
Examine or confirm:
Review:
Property deeds
Meetings from board of directors and management meetings to identify significant asset disposals
Rental revenue from land and buildings and equipment owned by the client but leased to others.
Test computation of depreciation Investigate the status of property plant and equipment not in current use.
Temporarily idle plant assets: Depreciation may be continued at normal rates Standby equipment and other property not needed at present or prospective levels of operation: future Consider whether carrying value is recoverable through future use.
equipment/Unsuitable
for
Analyze repair and maintenance expense accounts. Perform analytical procedures. Obtain a summary analysis of changes in property owned and reconcile to ledgers.
Evaluate financial statement presentation and disclosure for plant assets and for related revenue and expenses.
Presentation: Idle property not reclassified Dismantled idle equipment/Unsuitable for current operating use excluded from PPE Disclosures: Balances of major classes of depreciable assets Method or methods of computing depreciation Total amount of depreciation Additions: The basis of valuation Property pledged to secure loans Property not in current use should be segregated in the balance sheet