property and equipment procedures

Assume that you have identified the following risks at the account level related to 3W's property plant and equipment. Identify the most closely related financial statement assertion and related audit procedure that might be planned to most likely address the audit risk. the financial statement assertions and audit procedures may be used once, more than once, or not at all.

Assertions
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existence or occurance
completeness
rights and obligations
valuation or allocation
presentation and disclosure

Audit procedures
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a) trace opening balance in the summary schedule to the prior years audit working papers

b) review the current provision for depreciation expense and determine that the depreciable lives and methods used in the current year are consistent with those in prior years

c) determine that the responsibility for maintaining the property records is segregated from the custody of the property assets

d) examine deeds and title insurance certificates

e) perform cut off tests to verify that property and equipment additions are recorded in the proper period

f) dertermine that property and equipment are adequately insured

g) physically examine all major property and equipment additions

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27) 3W may not have title to certain property and equipment recorded as acquired in the year

ASSERTION:
AUDIT PROCEDURE:

28) Recorded property and equipment acquisitions may include nonexistent assets

ASSERTION:
AUDIT PROCEDURE:

29) recorded net property and equipment for appropriate amounts

ASSERTION:
AUDIT PROCEDURE: