QUESTION $3$

$(8$ Marks$)$

You are the auditor overseeing the audit of Toybox $($Pty$)$ Ltd$.$ While concluding procedures on the account headings reflected in the $31$ March $2022$ year$-$end financial statements, one of the audit team members brought the following information to your attention relating to property, plant and equipment:

An expensive piece of equipment used for manufacturing toys was purchased in February $2022$ and brought into production in April $2022.$ However, the machine has been depreciated for a full $12$ months as at $31$ March $2022.$

A jointing machine leased during the year had been expensed in full at $31$ March $2022($the machine should have been capitalised$).$

No adjustment$/$ write$-$off had been made in the accounting records for a crosscut machine which had been stolen during the year. The machine was not insured.

While conducting a physical verification of assets, a trainee accountant identified a number of items of equipment which had not been recorded in the fixed$-$asset register.

The company extended its warehouse during the year under audit. Most of the work was carried out by Toybox $($Pty$)$ Ltd$\text{'}$s own employees. Wages of the construction team were capitalised to the cost of the extension. Assume that this treatment is acceptable under IFRS and that the company drafts financial statements in accordance with IFRS.

You are required to:

State, with reasons, which assertions relating to property, plant and equipment may be affected by each of the above points $(1-5).$