A copy of the auditors working paper for auditing additions and disposals relevant to the balance of property, plant, and

Question:

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.


Required

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)?


Figure 11.4

New Millennium Ecoproducts 31/12/20 CLIENT: Period-end: W&S PARTNERS Currency/unit: $000 Debit/<Credit> K02 - ADDITIONS

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Related Book For  answer-question

Auditing A Practical Approach

ISBN: 978-1119566007

3rd Canadian edition

Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren

Question Details
Chapter # 11
Section: Professional Application Questions
Problem: 13
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: June 20, 2019 09:53:07