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You are currently working as the audit assistant at AB partners certified public accountant. During the audit of XYZ company you have been allocated audit...

      

You are currently working as the audit assistant at AB partners certified public accountant. During the audit of XYZ company you have been allocated audit of motor vehicles for year ending September 2018. You are required to highlight the substantive procedures you would undertake in your audit of motor vehicle

  

Answers


Joseph
1. Physical verification of motor vehicle.

2. Test of controls on purchasing of motor vehicle to booking of it on fixed asset register.

3. Substantive audit procedures on newly purchased motor vehicle.

4. Substantive audit procedures on disposal (This is important if there are any profit/loss on disposal of assets during the auditing period)

5. Substantive Analytical audit procedure on depreciation. (Calculating the depreciation based on the company policy to see if the depreciation amount makes sense)
Jose2013 answered the question on November 14, 2018 at 12:44


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