Your client, Schroeder Manufacturing Co., provided the following schedule of property, plant, and equipment for the year ended June 30, 2020. Balances have been agreed to the general ledger. As part of the audit, the in-charge has asked you to perform procedures related to testing additions to the accounts using data provided by the client.

REQUIRED
Download the PPEADDITIONS file (www.pearson -highered.com/arens.com) from the textbook website and perform the following audit procedures using Excel, Power B1, ACL, or IDEA. Document the steps followed for each procedure. A description of the codes and information contained in each column in the spreadsheet is included on the first tab.
a. Foot the file of additions to property, plant, and equipment for the year ended June 30, 2019, by asset code (ASSETCD) and agree to additions according to the schedule provided above. What audit objective(s) is (are) satisfied with this audit procedure?
b. Select all additions to the account greater than $25 000 for follow-up testing. How many items are identified and what is the total of the additions greater than $25 000? What further testing will the auditor perform for these acquisitions?
c. Identify all additions to property, plant, and equipment that were a result of significant repairs and maintenance (ASSETCD = RM – ME) for follow- up testing. How many items are identified? What further audit procedures will the auditor perform for these items?
d. Add an additional column to the spreadsheet and recalculate amortization expense for each item. Schroeder uses straight-line amortization, with a half-year convention (one-half year’s amortization on all asset acquisitions and disposals during the year) and assumes zero salvage value. Document the results of the procedure and recommend follow-up if necessary.
e. Verify the sequence of asset tag numbers used and identify any duplicates or gaps. What audit assertion(s) is tested by this procedure? Document the results of the procedure and recommend follow-up if necessary.

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Account Description Land Building Building/Land improvements Furniture fixture and equipment Manufacturing equipment Molds and tooling Vehicles and computer equipment Repairs and maint-Building Repairs and maint-Equipment 6/30/2019 Beginning Balance $8 349 748 45 093 983 7 340 983 2 984 783 8 992 436 1 239 867 1 034 784 302 784 192 783 $75 532 151 Additions $ 11 250 450 1 487 094 159 530 2 509 418 240 732 408 971 71 196 $16 127 391 Disposals $ 432 121 36 598 667 145 44 987 125 554 $1 306 405 6/30/2020 Ending Balance $8 349 748 56 344 433 8 395 956 3 107 715 10 834 709 1 435 612 1 318 201 302 784 263 979 $90 353 137