What is the key assertion at risk for the ppe additions

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Pedestrian Ltd (Pedestrian) has been a client of Violet Partners for many years. You are an audit senior and have been assigned to the Pedestrian audit for the first time for the financial year end 30 June 2020. During March 2020 you are completing the risk assessment for PPE, which is one of Pedestrian's most material accounts. You are also aware that Pedestrian has made a large investment in a new manufacturing process to place itself in a more competitive position. Your analytical procedures indicate an increase in acquisitions of PPE.

Required

Problem (a) What is the key assertion at risk for the PPE additions? Why is it at risk? Explain.

Problem (b) Identify the relevant substantive tests of details that would be appropriate to address the assertion at risk identified in (a).

Problem (c) How would your answers to the previous questions change if the PPE additions have been manufactured in-house by Pedestrian's engineers and toolmakers, rather than purchased?

Reference no: EM132883050

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