Juventus Motor Cars Co (Juventus) manufactures a range of motor cars and its year end is 30 June 2019. You are the assistant audit manager of Milan & Co and are currently preparing the audit programmes for the year-end audit of Juventus. You have had a meeting with your audit manager and he has notified you of the following issues identified during the audit risk assessment process: 1. Land and buildings Juventus has a policy of revaluing land and buildings, this is undertaken on a rolling basis over a five-year period. During the year Juventus requested an external independent valuer to revalue a number of properties, including a warehouse purchased in January 2019. Depreciation is charged on a straight line basis. Question: Describe the substantive audit procedures the auditor should perform to obtain sufficient and appropriate audit evidence in relation to: (i) The land and buildings and the recently purchased warehouse.
Juventus Motor Cars Co (Juventus) manufactures a range of motor cars and its year end is 30 June 2019. You are the assistant audit manager of Milan & Co and are currently preparing the audit programmes for the year-end audit of Juventus. You have had a meeting with your audit manager and he has notified you of the following issues identified during the audit risk assessment process:
1. Land and buildings
Juventus has a policy of revaluing land and buildings, this is undertaken on a rolling basis over a five-year period. During the year Juventus requested an external independent valuer to revalue a number of properties, including a warehouse purchased in January 2019.
Question:
Describe the substantive
(i) The land and buildings and the recently purchased warehouse.
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