Audit Procedures for Non-Current Assets (1)

Question 1

Completeness (summary reconcile open)

Answer 1

Obtain or prepare a summary of tangible non-current assets showing how the following reconcile with the opening position

Question 2

Examples of this open position?

Answer 2

Gross carrying amount
Accumulated depreciation
Carrying amount

Question 3

Completeness (compare non-current assets)

Answer 3

Compare non-current assets in general ledger with non-current assets register and obtain explanations for differences

Question 4

Completeness (sample assets exist)

Answer 4

For a sample of assets which physically exist, agree that they are recorded in non-current asset register

Question 5

Completeness (non-current asset register)

Answer 5

If a non-current asset register is not kept, obtain a schedule showing original costs and present depreciated value of major non-current assets

Question 6

Completeness (reconcile schedule)

Answer 6

Reconcile the schedule of non-current assets with the general ledger

Question 7

Existence (company physically inspects)

Answer 7

Confirm that the company physically inspects all items in non-current asset register each year

Question 8

Existence (inspect assets)

Answer 8

Inspect assets, concentrating on high value items and additons in-year

Question 9

What should be confirmed when items are inspected?

Answer 9

Existance
Are in use
Are in good condition
Have correct serial numbers

Question 10

Existence (Review records)

Answer 10

Review records of income-yielding assets

Question 11

Existence (Reconcile vehicles)

Answer 11

Reconcile opening and closing vehicles by numbers as well as amounts