ACCT4281- Auditing 2

Pineapple Beach Hotel Co. (Pineapple) operates a hotel providing accommodation, leisure

facilities, and restaurants. Its year end was April 30, 2016. You are the audit senior of Berry & Co. and are currently preparing the audit program for the year-end audit of Pineapple. You are reviewing the notes of last week's meeting between the audit manager and controller where the following material issue was discussed.

Pineapple incurred significant capital expenditure during the year on updating the leisure

facilities for the hotel. The controller has proposed that the new leisure equipment be

depreciated over 10 years using the straight-line method.

Required

Describe substantive procedures to obtain sufficient and appropriate audit evidence in relation to the above issue.