audit procedure

Inspect the plant register to confirm that no depreciation has been charged on the affected asset

Inspect the documentation that confirms that management is actively looking for a buyer at a price management is prepared to accept

Obtain a copy of the board minute that confirms the board’s decision to sell the asset

Re-perform the calculation that was carried out by the client to arrive at this year’s depreciation charge and ensure that no depreciation has been included since the decision to reclassify but that depreciation HAS been included up to the date of the decision to reclassify

How many marks is this?

Have you been precise in your replication of the question or could I bring in other elements like “Obtain management’s assurances that this the only asset that is reclassified” and “Obtain evidence to show how much time has passed since reclassification” or “Obtain copies of any correspondence from prospective purchasers together with their offers noting the value to confirm the management’s assertion that they really are actively looking to sell the asset”

If the question is purely to obtain evidence to confirm that depreciation has ceased, there surely cannot be many more marks than the 4 points I raised at the start

OK?