Audit Procedures for Non-Current Assets (6) Flashcards
(5 cards)
1
Q
Additions (inspection)
A
Verify additions by inspection of architect’s certificates, solicitor’s completion statements, supplier’s invoices
2
Q
Additions (Review expenditure)
A
Review capitalisation of expenditure by examining for non-current assets additions and items in relevant expense categories
3
Q
What should review capitalisation of expenditure ensure?
A
Capital/revenue distinction is correctly drawn
Capitalisation is in line with consistently applied company policy
4
Q
Additions (purchases allocated)
A
Inspect non-current asset accounts for a sample of purchases ensuring they have been properly allocated
5
Q
Additions (recorded by scrutinisng)
A
Verify that additions have been recorded by scrutinising the non-current asset register and general ledger
