Audit procedures Discuss how each of the following procedures could be used in the audit of fixed assets, e.g., various types of equipment used in the business. Procedure How used Assertion(s) tested Observation Physical examination Inquiry Confirmation Examination of documents Recomputation Reprocessing Vouching Analytical Procedures
Procedure How used Assertion(s) tested
Observation Observe taking of inventory of assets Existence
Physical examination Inspect existence and condition of assets. Existence, Valuation
Inquiry Inquire of management of assets not recorded or that have been sold or discarded. Existence, Completeness
Confirmation Confirm details of purchase with seller of asset. Existence, Valuation, Presentation and Disclosure, Rights
Examination of documents Examine supporting documentation. Existence, Valuation, Rights
Recomputation Recompute depreciation Valuation
Reprocessing Reprocess a sample of purchase transactions Existence
Vouching Vouching a sample of recorded assets Existence, Valuation, Rights
Analytical Analysis depreciation Valuation, Completeness
Procedures expense
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In a sale or return, title and risk of loss remain with the seller until the buyer accepts the goods.
Answer the following statement true (T) or false (F)
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