Required (kindly explain): 1. Why is it necessary to examine the lapsing schedule for additions and disposals of property, plant and equipment? 2. How do auditors test the reasonableness of the estimates used in relation to PPE (e.g. depreciation method, useful life, residual value?) 3. What are the procedures involved in determining the reasonableness of the depreciation expense during the year?
Required (kindly explain): 1. Why is it necessary to examine the lapsing schedule for additions and disposals of property, plant and equipment? 2. How do auditors test the reasonableness of the estimates used in relation to PPE (e.g. depreciation method, useful life, residual value?) 3. What are the procedures involved in determining the reasonableness of the depreciation expense during the year?
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity
Section: Chapter Questions
Problem 22RQSC
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Required (kindly explain):
1. Why is it necessary to examine the lapsing schedule for additions and disposals of property, plant and equipment?
2. How do auditors test the reasonableness of the estimates used in relation to PPE (e.g.
3. What are the procedures involved in determining the reasonableness of the depreciation expense during the year?
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