This document outlines an audit program for property, plant, and equipment. The objectives are to verify existence and completeness of assets, proper valuation and allocation of costs, and adequate but not excessive depreciation. Procedures include analytical reviews, testing purchases and disposals, physical inspections, depreciation schedule analysis, and ensuring proper classification and disclosure in financial statements.
This document outlines an audit program for property, plant, and equipment. The objectives are to verify existence and completeness of assets, proper valuation and allocation of costs, and adequate but not excessive depreciation. Procedures include analytical reviews, testing purchases and disposals, physical inspections, depreciation schedule analysis, and ensuring proper classification and disclosure in financial statements.
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Audit Program for Property Plant and Equipment (Grace Crop)
This document outlines an audit program for property, plant, and equipment. The objectives are to verify existence and completeness of assets, proper valuation and allocation of costs, and adequate but not excessive depreciation. Procedures include analytical reviews, testing purchases and disposals, physical inspections, depreciation schedule analysis, and ensuring proper classification and disclosure in financial statements.
This document outlines an audit program for property, plant, and equipment. The objectives are to verify existence and completeness of assets, proper valuation and allocation of costs, and adequate but not excessive depreciation. Procedures include analytical reviews, testing purchases and disposals, physical inspections, depreciation schedule analysis, and ensuring proper classification and disclosure in financial statements.
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The document outlines an audit program for property, plant and equipment including audit objectives, assertions, and procedures.
The audit objectives are to determine that PPE are properly recorded, valued, depreciated, and disclosed. The audit assertions are existence, completeness, valuation and allocation, rights and obligations, and presentation and disclosure.
Audit procedures include analytical procedures, obtaining a PPE list, vouching additions and disposals, examining ownership evidence, inspecting assets, analyzing depreciation and maintenance, and reconciling PPE records.
AUDIT PROGRAM FOR PROPERTY, PLANT AND EQUIPMENT
Index Reference ___________
Client Name: Grace Corporation Date of Audit: ____________
Staff In-Charge:
Audit In-Charge:
Year-End Audit Date:
AUDIT OBJECTIVES AND AUDIT ASSERTIONS
AUDIT OBJECTIVES AUDIT ASSERTIONS
To determine that property, plant, and Existence, Completeness, Rights and equipment reflected in the accounts represent a Obligations complete listing of capitalizable cost of assets purchased, constructed or leased by the company, and such assets are physically on hand. To determine that property, plant, and Valuation and Allocation equipment are valued at cost in accordance with GAAP. To determine that the costs and related Existence, Completeness, Valuation and depreciation applicable to all sold, abandoned, Allocation damaged, or obsolete property have been properly removed from the accounts. To determine that depreciation charged to Valuation and Allocation income during the period is adequate but not excessive and has been computed on an acceptable basis consistent with that used in prior years. To determine that the balances in the Valuation and Allocation depreciation allowance accounts are reasonable, considering the expected useful lives of the property units and estimated salvage value. To determine that property is properly Presentation and Disclosure classified in the balance sheet, and liens, significant fully depreciated assets, idle property, and property held for investment purposes are properly disclosed.
Audit Procedures Done By Date Done Reviewed By
Perform analytical procedures.
Obtained a list of property, plant, and
equipment from the client.
Vouch purchases of property, plant
and equipment and investigate disposals.
Examine evidences of legal
ownership. Examine any lease agreements and the lease terms of agreements.
Conduct physical inspection and
reconcile with the list of property, plant and equipment.
Obtain an analysis of the depreciation
for the year. a. Perform analytical procedures to test the reasonableness. b. Perform Recalculations
Analyze maintenance and repairs
accounts.
Prepare depreciation schedule records
and reconcile with the record provided by the entity.
Test for impairment of property, plant
and equipment. a. Determine if the management properly identified indicators of impairments. b. Determine the assumptions made by the entity regarding impairments. c. Determine if impairments are properly recognized and recorded.
Review of minutes of the meetings
and other documents related to the property, plant and equipment to determine ownership and other relevant information.
Identify idle property and obsolete
plant and equipment and determine proper accounting application.
Determine the insurance coverage.
a. Note the contracts of insurance.
Determine that property, plant and
equipment are carried at proper amounts.
Determine if property, plant and
equipment are properly classified in the financial statements and relevant disclosures as required by PFRS are followed.