SAP - FixedAssets

SAP - FixedAssets - Review lease and rental agreements. 3....

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    AP-4   Substantive Audit Program - Property, Plant and  Equipment Assertions Begin with the list of assertions below and add others you think appropriate. Then write  your audit program to test those assertions. 1. All recorded fixed assets are in productive use. 2. All asset disposals have been recorded. 3. All asset additions have been recorded. 4. Repair and maintenance expenses have not been capitalized. 5. Asset additions have not been charged to repairs and maintenance expense. 6. All freight, installation, taxes, etc. on additions have been capitalized. 7. Depreciation has been calculated accurately. 8. Assets pledged as collateral have not been improperly removed. Program Steps: 1. Existence or Occurrence Examine vendors’ invoices and receiving reports. Physically examine assets. 2. Completeness Examine vendors’ invoices of closely related accounts such as repairs and  maintenance to uncover items that should be manufacturing equipment.
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Unformatted text preview: Review lease and rental agreements. 3. Rights or obligation Examine vendor invoices for terms of agreements. 4. Valuation and allocation Foot the acquisition schedule. Trace individual acquisitions for amounts and descriptions. Examine vendors invoices for accuracy. Examine vendors invoices in manufacturing equipment account to uncover items that should be classified as office equipment, part of the buildings, or repairs. Examine vendors invoices of closely related accounts such as repairs to uncover items that should be manufacturing equipment. Examine rent and lease expense for capitalizable leases. Review transactions near the balance sheet date for proper period. 5. Presentation and disclosure Verify that worksheet balances corresponds to General Ledger balances....
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This note was uploaded on 05/16/2011 for the course AC 404 taught by Professor Richardkido during the Spring '10 term at Chaminade University.

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SAP - FixedAssets - Review lease and rental agreements. 3....

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