You are conducting the audit of Computer World Ltd for the year ended 30 June 2018 and are reviewing the audit working papers for property, plant and equipment (PPE) prepared by your audit assistant Megan Cartwright. Megan tested the PPE additions and disposals during the year and recalculated the depreciation. No discrepancies were found in the testing. As a result, Megan concluded PPE, which is a material balance, was appropriately valued.

REQUIRED

(a) Explain whether the audit team member has arrived at an appropriate conclusion.

(b) Describe how your conclusion for part (a) will impact upon the further conduct of the audit (if at all).

Answer rating: 100% (QA)

a Megans audit procedures on the PPE is correct but inadeq... View the full answer