Professional Documents
Culture Documents
Assertions
Existence - All PPE on the SFP actually exist.
Completeness - All PPE owned by the entity are included in the SFP.
Valuation and Allocation - PPE is carried at the appropriate amount (PAS 16 and PAS 36)
Rights and Obligations - The entity owns/has legal rights over the PPE on the SFP.
Presentation and Disclosure - All required disclosures are included (PAS 16).
Substantive Procedures
1. Obtaining a lapsing schedule and reconcile with ledgers (SL-GL recon).
List of PPE items
Cost
Beginning Balance xx PY PY - agreed with PY WP / AFS
Additions xx TB/GL - agreed with GL
Disposals (xx)
Ending Balance xx TB/GL
Accumulated Depreciation
Beginning Balance xx PY
Depreciation Expense xx
Disposals (xx)
Ending Balance xx TB/GL
2. Vouch for additions and disposals (including retirements) of PPE during the year.
3. Physically inspecting major acquisition of PPE during the year.
4. Examine proof of ownership and restrictions of PPE.
5. Analyze lease, repairs and maintenance expense accounts.
Entry Made Should be Adj. Entry
Rent Expense xx ROUA xx ROUA xx
Cash xx LL xx Dep. Exp - ROUA xx
Int. Exp xx
Dep Exp. - ROUA xx A/D - ROUA xx
A/D - ROUA xx Rent Expense xx
LL xx
LL xx
Int. Exp xx
Cash xx
Entries Made
Repairs and Maintenance Exp. xx
Cash xx
Correct Entry
PPE xx
Cash xx
Dep. Exp. xx
A/D xx
Adjusting Entry
PPE xx
Dep. Exp. xx
Repairs and Maintenance Exp. xx
A/D xx