reviewing the list of additions

This topic has 1 reply, 2 voices, and was last updated 4 years ago by Kim Smith.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
July 28, 2021 at 8:46 am #629637
Noah098
Member
- Topics: 935
- Replies: 352
Review the list of additions and confirm that they relate to capital expenditure items rather than repairs and maintenance.
maam could you explain how the person reviewing will discern if a certain inclusion is of capital nature or revenue expenditure nature?
July 28, 2021 at 9:17 am #629641
Kim Smith
Keymaster
- Topics: 138
- Replies: 8468
If in doubt the auditor would refer to supporting invoice but for example:
Car – $18,000
Road tax – $500
Extended warranty – $1,500
You should be able to distinguish capital from revenue expenditure (assumed knowledge of FA/F3).
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.