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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Substentive procedures NCA: Past exam March/June 2016 Q:4
Dear Tutor,
Could you please advise if the following would be an acceptable substantive procedure for the disposed assets:
Review the schedule of the disposed NCA and ensure that items were removed from the NCA register and proper accounting treatment (profit, loss on disposal) was performed.
Best,
That is certainly fine. Whether all disposals or a sample are examined depends on the volume of disposals and the internal controls surrounding the process.
Thank you.
