Your firm is the auditor of Daybrook Insurance Brokers Ltd., which operates from a number of branches and provides insurance for the general public and businesses. The company obtains insurance from large insurance companies and takes a commission for its services. You have been asked to audit certain aspects of the company’s property, plant, and equipment for the year ended December 31, 2023.

The company’s main property, plant, and equipment include:

• freehold land and buildings

• computers, printers, and related equipment, which are used by staff

• cars, which are provided to directors and salespeople who visit customers The company has been operating for a number of years, and it maintains details of its office equipment and cars on a computerized fixed asset master file. The company uses the following depreciation rates:

• buildings (5 percent straight-line)

• office equipment (including computers) (10 percent straight-line)

• cars (25 percent straight-line)

You are concerned that the depreciation rate for the computers may be inadequate.

Required

a. Describe how you would verify the ownership of freehold land and buildings, computers, and cars.

b. Explain how you would determine that the depreciation rate on the various assets is adequate.