AUDITING PROCEDURES OF NON-CURRENT ASSETS

Which of the following substantive procedures provides evidence over the COMPLETENESS of non-current assets?

• Select a sample of assets included in the non-current asset register and physically verify them at the client premises

• Review the repairs and maintenance expense account to identify any items of a capital nature

• For assets disposed of, agree the sale proceeds to supporting documentation and cash book

Which one is the assertions relevant to the audit of tangible non-current assets?

• Completeness

• Existence

• Presentation and disclosure assertions

• All in above

Which one is TRUE for the audit procedure that provides appropriate evidence for 'Existence' assertion in the tangible non-current assets?

• Ensure assets are correctly valued by checking the reasonableness of depreciation calculations.

• Ensure non-current assets exist by taking a sample of assets from the register and physically seeing the asset.

• Ensure the company owns the asset by seeing appropriate document of ownership for example, a purchase invoice.

• Ensure that all non-current assets are recorded in the non-current asset register by agreeing a sample of assets physically verified back to the register.

Which of the following audit procedures are appropriate to test the VALUATION assertion for non-current assets?

i) Ensure disposals are correctly accounted for and recalculate gain/loss on disposal

ii) Recalculate the depreciation charge for a sample of assets ensuring that it is being applied consistently and in accordance with MFRS 16 Property, Plant and Equipment.

iii) Review the repairs and maintenance expense accounts for evidence of items of a capital nature

iv) Review board minutes for evidence of disposals during the year and verify that these are appropriately reflected in the non-current assets register

• i and ii

• i, iii and iv

• ii, iii and iv

• All in above.

What is the use for 'Disposal' in audit procedures of non-current assets?

• Investigate the possibility of disposing of non-current assets.

• Authenticate using the prior year's balance sheet and audit files.

• Justify the purchasing cost using actual evidence.

• Policy adequacy and appropriateness were evaluated.

What is the use for 'Disposal' in audit procedures of non-current assets?

• Investigate the possibility of disposing of non-current assets.

• Authenticate using the prior year's balance sheet and audit files.

• Justify the purchasing cost using actual evidence.

• Policy adequacy and appropriateness were evaluated.

Which one is the assertions relevant to the audit of tangible non-current assets?

• Completeness

• Existence

• Presentation and disclosure assertions

• All in above