a

For major amounts charged to PP&E and a sample of smaller charges, examine supporting documentation for expenditure amounts, budgetary approvals, and capital work orders.

Valuation, Existence

b

For a sample of capitalized PP&E$,$ examine construction work orders in detail.

Valuation

c

For a sample of construction work orders, vouch time and material charges to supporting payroll and material usage records. Review the reasonableness of the hours worked, the work description, and the material used.

Valuation

d

Evaluate the policy and procedures for allocating overhead to the work orders and recalculate their application.

Valuation and Allocation

e

Determine whether corresponding retirements of replaced PP&E have occurred and have been properly entered in the detail records.

Existence

f

Select major additions for the year and random samples of other additions and inspect the physical assets

Existence

g

Vouch the samples of charges in repairs account....

Completeness

h

Review the useful lives, Depreciation methods...

Valuation and Allocation

i

Study loan documents for the terms and security.....