Audit Program #6 - Apple Blossom Cologne Company Audit...

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Apple Blossom Cologne Company Audit Program for Property, Plant, and Equipment AP - 6 W/P Ref Initials Existence/Occurrence: Rights and Obligations 1. Prepare, or obtain from client, summary schedules indicating beginning balances, additions, retirements, and ending balances for each property, plant, and equipment account and its related accumulated depreciation account. 2. For additions to property, plant, and equipment: (a) Vouch additions to invoices and other supporting documents. (b) Determine that all additions have proper approval. (c) If possible, inspect all property, plant, and equipment additions. (d) Trace authorization for additions to minutes from Board of Directors meetings. (e) Review the cost buildup for all additions to insure that all elements of cost (discount, freight, installation, rework, etc.) are properly included. 3. For retirements of property, plant, and equipment: (a) Vouch retirements to retirement work orders and other appropriate documentation, computing book value and determining gain or loss. (b) Trace salvage proceeds to cash receipts journal.
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This note was uploaded on 05/06/2009 for the course ACCT ACCT2 taught by Professor Asifbashir during the Spring '08 term at Aarhus Universitet.

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