Mar/Jun 2016 Q2(a) New Packing Machine

There is insufficient evidence and the cost of the machine is material at $1.6m (although carried at less than materiality in the SoFP at the end of the year remember that cost of additions will be disclosed in the movements on property, plant and equipment note in accordance with IAS 16). In your alternative scenario there would not be the same issues and the examiner would not bother to provide so much information unless creating an alternative risk scenario (e.g. one of impairment) - again though, as $1.4m is after charging current year depreciation you would consider the $1.6m to be material.

I meant if the Q indicated that an asset's carrying amount was $1.6 at the beginning of the year (say it originally cost $2m) - you wouldn't just consider the carrying amount after depreciation at the end of the year. It's true that if you already verified acquisition in a previous year you don't "re-audit" it in a later later. (But ongoing existence would be audited through physical inspection on a sample basis.) The examiner isn't going to describe something that is not an issue - so best that you don't make them up.