What further audit procedures will auditor perform for items

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Reference no: EM133920585

Problem

Your client, Schroeder Manufacturing Co., provided the following schedule of property, plant, and equipment for the year ended June 30, 2026. Balances have been agreed to the general ledger. As part of the audit, the in-charge has asked you to perform procedures related to testing additions to the accounts using data provided by the client.

Account Description	6/30/2025 Beginning Balance	Additions	Disposals	6/30/2026 Ending Balance
Land	$8,349,748	-	-	$8,349,748
Building	45,093,983	$11,250,450	-	56,344,433
Building/Land improvements	7,340,93	1,487,094	$432,121	8,395,956
Furniture fixture and equipment	2,984,783	159,530	36,598	3,107,715
Manufacturing equipment	8,992,436	2,509,418	667,145	10,834,709
Molds and tooling	1,239,867	240,732	44,987	1,435,612
Vehicles and computer equipment	1,034,784	408,971	125,554	1,318,201
Repairs and maintenance - Building	302,784	-	-	302,784
Repairs and maintenance - Equipment	192,783	71,196	-	263,979
TOTALS	$75,532,151	$16,127,391	$1,306,405	$90,353,137

Access the PPEADDITIONS file and perform the following audit procedures using Excel. Document the steps followed for each procedure. A description of the codes and information contained in each column in the spreadsheet is included on the first tab.

Task

I. Select all additions to the account greater than $25,000 for follow-up testing. How many items are identified and what is the total of the additions greater than $25,000? What further testing will the auditor perform for these acquisitions? Get the instant assignment help.

II. Identify all additions to property, plant, and equipment that were a result of significant repairs and maintenance (ASSETCD = RM - ME) for follow-up testing. How many items are identified? What further audit procedures will the auditor perform for these items?

III. Verify the sequence of asset tag numbers used and identify any duplicates or gaps. What audit assertion(s) is test

Reference no: EM133920585

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