Page 88 - Auditinf Electronic System

4) Verify depreciation expense
5) Verify the ending balance in accumulated depreciation
1-The objectives of auditing the Property plant and equipment balance for current
period acquisitions are

1) Existence: Current year acquisitions as listed exist
o Physically examine assets
o Examine vendor`s invoice and receiving reports

2) Completeness: all Existing acquisitions are recorded.
o Review lease and rental agreements

o Examine maintenance and repairs accounts for any
expensed item that should be capitalized

3) Accuracy: Current year acquisitions as listed are accurate
o Examination of vendors’ invoice

4) Classification: Current year acquisitions as listed are correctly classified
o Examine vendor`s invoice to uncover items that should
Be recorded as equipment
o Examine maintenance and repairs accounts for any
expensed item that should be capitalized

o Examine lease and rent expenses for operating lease.

5) Cutoff: Current year acquisitions as listed are recorded in correct period
o Review transactions near year end date for correct period

6) Right and obligations: rights:
o Examine vendors’ invoice
o Examine purchase and lease contracts
o Examine property deeds for land and major buildings

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‫جميع الحقوق محفوظة ـ الإعتداء على حق المؤلف بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية‬