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Describe audit procedures to ensure:
(a) the accuracy of the summary of property plant and equipment
(b) all items of a capital expenditure are included in additions for the year and that no revenue expenditure has been capitalized
(c) the depreciation rates are calculated appropriately.
You attended the inventory count of your client B Ltd. You observed the following during the count.
1. Warehouse staff counted specific areas of the stock as determined by the warehouse
Supervisor; staff members, including the warehouse supervisor, were allocated their own
area to count.
2. Several blank paper sheets were issued to count staff for recording stock counted.
3. Staff were instructed to write down the stock description and number counted.
4. Staff were told to write the stock quantities in pencil on the sheets to ensure errors can be
5. Any staff that completed a section early were allocated to another area to help out one of the
6. The supervisor collected all sheets at the end of the count to finalise the stock count.