A copy of the auditors working paper for auditing additions and disposals relevant to the balance of property, plant, and
A copy of the auditor’s working paper for auditing additions and disposals relevant to the balance of property, plant, and equipment (PPE) for the client New Millennium Ecoproducts is presented in Figure 11.4.
a. What assertions are relevant to (i) additions and (ii) disposals of PPE?
b. Find the details of the additions. Explain the diff erence between the two items, particularly with respect to depreciation.
c. Find the details of the disposal. How much was the gain or loss on sale? Why is the auditor interested in the amount of the gain or loss (explain the comment by the auditor about the disposal in the working paper)?
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