11 Jun 2026

Substantive Audit Procedures for PPE - Rights and Obligations

Rights and Obligations

Audit Objective

To ensure that the company owns the asset or has a valid right to use it.

Audit Procedures

The documents inspected depend on the type of asset.

PPE TypeSupporting Document
Freehold land and buildingsTitle deed
Leasehold propertyLease agreement
Motor vehiclesVehicle registration document
Machinery and office equipmentPurchase invoice
Leased assetsLease contract

These examples are also highlighted in the substantive procedures table in the uploaded slides. 

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