Your audit practice has recently been appointed as auditor to W Limited (W), a manufacturing company. As the audit senior, you have just received the draft accounts from W's accountant which show the following Property Plant and Equipment (PPE) for the year ended March 31, 2016:

LandPlant andMotor Total

and Buildings Machinery Vehicles

$000 $000$000 $000

Cost

Beginning1,200 650380 2,230

Additions120 244 147 511

Disposals- (130) (157) (287)

Ending1,320 764370 2,454

Accumulated

Depreciation

Beginning650 353271 1,274

Depreciation49 8285 216

Disposal- (95) (142) (237)

Ending699 340 214 1,253

REQUIRED:

(a)Prepare, at the request of your engagement manager, a memorandum for the assistant assigned to the audit, setting out the audit program for the audit of PPE in W.

(b)Discuss three ways to verify the existence of PPE.