Cactus Credit Union (CCU) is a regional credit union with 8 branches across the state. CCU leases

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Cactus Credit Union (CCU) is a regional credit union with 8 branches across the state. CCU leases its premises and buys furniture, such as waitingarea chairs and back-office desks, through a central asset purchasing department. All computer assets are acquired on finance leases. The furniture in the waiting area has a life of four years and repairs are common because of constant use. Back-office furniture items have a life of seven years and are often relocated as branches are refurbished or relocated at the expiration of the premises lease. CCU has adopted a ‘green’ office policy over the last three years and refurbishment and recycling of furniture is encouraged. Where furniture is replaced, suppliers with ‘green’ credentials are preferred. In these cases, old furniture is returned to the supplier as a trade-in on new furniture, even when the market value of these items is virtually zero.


Required

Make a list of audit procedures that could be used for substantive testing of furniture at CCU. Explain which assertion each procedure is testing.

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Related Book For  answer-question

Auditing A Practical Approach

ISBN: 9780730382645

4th Edition

Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton

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