Two main questions about Audit Reports and substantive tests with individual parts. Audit opinion...

QUES110N 2: Substantive Tests [24 marks] Your firm is the auditor ofguhamlnsurance Brokers Ltd, which operates from aggmberuoj branches and provides insurance for the general public and businesses. The company obtains insurance from large insurance companies and takes a commission for its services. You have been asked to audit certain aspects ofthe company's property, plant and equipment for the year ended 30 June 2019. The company's main property, plant and equipment include: - Land and buildings - PC's and related equipment, which are used by staff . Vehicles, which are provided to executives and salespeople who visit customers The company has been operating for aunymbgngt years, and it maintains details of its office equipment and cars on a computerised non-current asset register. The company uses the following depreciation rates: - Buildings {2% pa on cost) . Office Equipment (including PG's) (10% p.a. on cost) - Vehicles {25% p.a. on cost) You are concerned that the depreciation rate for the computers may be inadequate. You have decided not take predominantly substantive audit approach. Required: A. Describe the audit procedures that you would undertake to verify the ownership, existence and valuation of the land and buildings. B. Describe the audit procedures that you would undertake to determine that the depreciation rate on the various assets is adequate