Matching. Seven audit procedures are listed below. These audit procedures would be performed in the property, plant and equipment (PPE) accounts. Also listed below are the financial statement assertions. For each audit procedure, select the main (most relevant) underlying assertion from the dropdown menu. The assertions may be used once, more than once, or not at all.

Financial Statement Assertions

Existence or occurrence

Completeness

Valuation or allocation

Rights and obligations

Presentation and disclosure

Audit Procedure Financial Statement Assertion

Group of answer choices

Select a sample of PPE acquisitions from the acquisitions journal (which shows the increases in PPE). Trace the information about these acquisitions to the supporting purchases contracts and purchase invoices and then to the receiving reports. (These receiving reports would represent various items of PPE received from specific suppliers).

[ Choose ] Valuation or allocation Completeness Presentation and disclosure Rights and obligations Existence or occurrence

Select a sample of receiving reports for the last month of the year. Trace each receiving report to the related entry in the acquisition journal to see the increase in PPE.

[ Choose ] Valuation or allocation Completeness Presentation and disclosure Rights and obligations Existence or occurrence

Discuss Accumulated Depreciation with the controller. You discuss the reasonableness of the salvage value and the years of useful life for the PPE.

[ Choose ] Valuation or allocation Completeness Presentation and disclosure Rights and obligations Existence or occurrence

Discuss the leased assets included in PPE. You ask the controller if the company can legally use these assets.

[ Choose ] Valuation or allocation Completeness Presentation and disclosure Rights and obligations Existence or occurrence

Trace the total from the subsidiary PPE records to the balance for PPE in the general ledger.

[ Choose ] Valuation or allocation Completeness Presentation and disclosure Rights and obligations Existence or occurrence

Review a sample of purchase invoices, comparing the purchase prices of PPE to the amounts recorded in the acquisitions journal.

[ Choose ] Valuation or allocation Completeness Presentation and disclosure Rights and obligations Existence or occurrence

Walk around with the controller to observe various items of PPE, to verify that items in the Equipment category are not actually Buildings or Furniture and Fixtures.

[ Choose ] Valuation or allocation Completeness Presentation and disclosure Rights and obligations Existence or occurrence