Page 91 - Demo

جميع الحقوق محفوظة ـ اإلعتداء عىل حق املؤلف 91 بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية7) Realizable value: whether depreciation expense in the period and accumulated depreciation are properly recorded and posted. Realizable value applies only to assets 8) Detail tie-in: Current year acquisitions in acquisitions schedule agree with master file amounts and totals agree with ledger o Trace individual acquisitions to the master file for amounts o Foot the acquisition schedule 1) Verify current year acquisitions: Auditors should verify recorded transactions for correct classification among various equipment accounts. o Examine purchase or lease contracts to determine whether capitalization of the equipment is appropriate a) Capitalization: It is also possible the client has incorrectly capitalized repairs, rents, or similar expenses, to acquisitions of fixed assets b) Operating Leases: the client has a right to record equipment as an asset. Some large manufacturing equipment and other types of machinery, such as sophisticated medical equipment or computer data center equipment, may be under an operating lease. 2) Verify current year disposals: Auditor should verify disposals, The starting point for verifying disposals is the client’s schedule of recorded disposals Detail tie-in tests of the recorded disposals schedule are necessary o tracing the cost and accumulated depreciation of the disposals to the property master file o Analyze gains and losses on the disposal of assets and miscellaneous income for receipts from the disposal of assets o Review plant modifications and changes in product line, and changes in major, costly computer-related equipment; property taxes; or insurance coverage for