In connection with a recurring audit of the financial statements of Louis Manufacturing Company for the year ended December 31, 19X9, you have been assigned the audit of the manufacturing equipment, manufacturing equipment-accumulated depreciation, and repairs to manufacturing equipment accounts. Your review of Louis's internal control policies and procedures has disclosed the following pertinent information:

1. The manufacturing equipment account includes the net invoice price plus related freight and installation costs for all of the equipment in Louis's manufacturing plant.

2. The manufacturing equipment and accumulated depreciation accounts are supported by a subsidiary ledger that shows the cost and accumulated depreciation for each piece of equipment.

3. An annual budget for capital expenditures of \(\$ 100,000\) or more is prepared by the budget committee and approved by the board of directors. Capital expenditures over \(\$ 100,000\) that are not included in this budget must be approved by the board of directors, and variations of 20 percent or more must be explained to the board. Approval by the supervisor of production is required for capital expenditures under \(\$ 100,000\).

4. Company employees handle installation, removal, repair, and rebuilding of the machinery. Work orders are prepared for these activities and are subject to the same budgetary control as other expenditures. Work orders are not required for external expenditures.

Required:

a. Cite the major objectives of your audit of the manufacturing equipment, manufacturing equipment-accumulated depreciation, and repairs of manufacturing equipment accounts. Do not include in this listing the auditing procedures designed to accomplish these objectives.

b. Prepare the portion of your audit program applicable to the audit of \(19 \mathrm{X} 9\) additions to the manufacturing equipment account.