Audit Procedure Confusion

In order to avoid the impression of repetition, I would try to avoid the repeated use of “lease agreement”

Thus ….

“obtain a copy of the new lease agreement from the client

(if it’s not a new lease, examine the copy of the lease that is filed on the previous year audit file, confirm the value details brought forward according to the client with those details as shown on the audit schedule last year)

“confirm the classification of the lease as being a finance lease (or operating, as appropriate)

“examine the new lease contract to determine where responsibility for repairs and maintenance of the asset lies

“recalculate the charge for finance lease interest (if appropriate) and agree with the figure as shown within the draft financial statements

“confirm by recalculation that the client’s depreciation policy as disclosed in the notes to the financial statements is consistently applied to the newly leased asset

“physically inspect the new asset to ensure that not only does it exist but that it does not appear to be damaged and that it is operational

“examine the plant register to confirm that the acquisition details have been recorded accurately

“verify the validity of the details of cost as shown in the lease contract by comparing with the manufacturer’s product brochure

(do you want to bring in board minutes, verification of cash payments, confirmation of interest expense, existence of any impairment indicators, confirmations from third parties)

I don’t even know why you feel it necessary to put yourself in the position of worrying about repetition! Do you?