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Audit test relevant to PPE

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Audit test relevant to PPE

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by Ken Garrett.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • July 18, 2018 at 6:09 pm #463756
    samsun
    Member
    • Topics: 9
    • Replies: 13
    • ☆

    Hi
    There was a question in J 13 that Describe FIVE types of procedures for obtaining audit evidence and For each procedure, describe an example relevant to the audit of property, plant and equipment.

    As far as audit test relevant to property, plant and equipment, is concerned would the following two be correct to say that:

    1) Obtain confirmation from valuer to ensure value of PPE is properly recorded
    2) Observe segregation is in place or not with respect to payment of machinery and receiving of machinery

    July 19, 2018 at 7:56 am #463811
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10591
    • ☆☆☆☆☆

    1 Is generally Ok only for property that has been revalued. Most PPEnis shown at cost less NRV.

    2 Iam not sure segregation can be observed. Easier to say observe accounting staff carrying out physical incpection of PPE.

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  • The topic ‘Audit test relevant to PPE’ is closed to new replies.

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