Completeness
Audit Objective
To ensure that all PPE additions and disposals have been recorded.
Audit Procedures
The auditor may:
- Select physical assets observed at the business premises and trace them to the PPE register.
- Check purchase invoices and supporting documents for newly acquired PPE.
- Review board of directors' meeting minutes for approval of major purchases or disposals.
- Inspect disposal documents to ensure assets sold or scrapped have been removed from the register.
- Review repairs and maintenance expenses to identify items that should possibly be capitalised.
Example
The auditor notices a newly installed air-conditioning system during a physical inspection. The auditor checks whether it is included in the PPE register.
- Assertion tested: Completeness
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