List and describe the audit tests you would perform to verify the amounts shown in property plant

and
equipment in the company’s accounts for the current year ended 31 March.

Non- current Asset Ledger

I would compare the non-current asset ledger with that of physical assets and find their existence with
that of books.
I would ensure the assets are utilized appropriately for the use in the organization, for office use.

Purchase Invoices
I would check the purchase invoices for addition of assets if the addition of asset existed in real or not.
I would also ensure the price of asset bought is correctly entered in books or not.

Sales invoices
I would check the sales invoices to see if the assets was sold in real or not.
I would ensure that the disposed of value is correct with that of sales invoices.

Bank statements
I would check the bank statements of whether the sale asset value was received from the related party
or not.
Similarly, I would check to the asset value bought of invoice and payment to the party via bank is
correct or not.

Physical assets
I would see if the asset that is found in register exist in real or not.
I would also observe whether the asset is used for business purpose or for self-interest.

Depreciation policy and rates

I would see that the depreciation is done correctly with 2% on land, 10% on building and 25% on motor
vehicles.
I would also see no depreciation is charged on disposed assets whereas full depreciation on the asset
bought year.

Capital expenditures budgets

I would check on the budgets with that of assets bought to ensure that the asset is bought with budget
plants.
I would also see the quantity and price of budget capital expenditure to be made on non-current
assets.

b) If the company did not maintain a PPE register, describe the problems you would experience and
how it would affect your audit work and opinion.
If the company did not maintain a PPE register, I would experience some difficulties in the audit
procedure.
IF the PPE register is not available, I could not check the non- current assets value with that of
financial statements. This would make my audit opinion on financial assets to be correct.
If the PPE register is not available, I could not see the addition and disposals of assets which would
make me give the available list on financial assets to be proper.
In the inavailability of PPE register, I could not see how the assets are being depreciated and rate of
depreciation.
If the auditor can’t be provided with PPE register, he needs to search for each bills of assets
purchased and their values to which it was purchased.
The auditor can’t know why and for what purpose is the asset being used by the organization.