Existence - plant and machinery, Auditing

Existence - Plant and Machinery

However this should generally be checked through physical inspection, so a problem arises.  Items of machinery and plant can be numerous mobile, valuable and portable.  Therefore it becomes difficult for the auditor to be assured which the value attached to machinery represents plant and plant machinery which usually exists for the balance sheet date.  Therefore we shall digress a little and think about a record which is crucial in surly the existence of fixed assets within this type and this is the fixed assets register.

The fixed asset register is an essential independent register such auditors invariably encourage their clients to continue. Since it to be a truly independent registers that the person maintaining it should have no task for:

a) Authorizing or ordering the purchase of fixed assets.

b) The custody of the fixed assets.

c) Authorizing the disposal of fixed assets.

d) Maintaining common ledger accounts.

e) Custody of readily possible assets.

Posted Date: 1/25/2013 1:58:52 AM | Location : United States







Related Discussions:- Existence - plant and machinery, Assignment Help, Ask Question on Existence - plant and machinery, Get Answer, Expert's Help, Existence - plant and machinery Discussions

Write discussion on Existence - plant and machinery
Your posts are moderated
Related Questions
OBJECTIVES To apply certain steps in the audit planning process, with emphasis on risk identification and audit response (strategy) thereto. To provide you with the exp

Verification Procedures - Long-Term Liabilities a) Received a schedule detailing the sums due at the starting of the year, redemptions and additions and the sum due at the yea

Authoritative Document is IAS 17 Leases The suitable technique of amortization or depreciation to require in the case of leasehold property and freehold buildings is straight-

Following three frameworks/ concepts are an integral part of the ‘world of auditing' which may be used by auditors throughout their audit engagements. (i) Overview of the audit

What are the strength of Stock transfer note

I have a auditing case study i need to complete in chapter 8 of Auditing & Assurance service (fifteenth edition) by Alvin A. Arens, Randal J. Elder and Mark S. Beasley. I don''t kn

Hi Dear, Could you please help me with online exam in Auditing Class !!

What is the role of the auditor, and what are the key duties the auditor must carry out? Role of the Auditor In modern commercial environmental it is desirable that bus

Audit Reports - Going Concern In the vast widely of cases, the going to relate assumption is suitable and whether applied no mention require be made in the auditor's report.

#Fortex Limited, the meat processing firm, was formed in 1985 from three smaller companies. In 1993, however, after a few years of spectacular growth, the company collapsed. a) S