How to test the existence assertion for PP&E?
To test the existence of PP&E, the audit team should vouch transactions listed in the general ledger or fixed asset schedule to vendor invoices.
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How to test completeness for property, plant, and equipment?
The risk is that the company purchased equipment and the transaction wasn’t recorded in the financial statements. To test completeness, the audit team would sample transactions from the fixed asset requisition form or the fixed asset schedule and trace the item to the general ledger. Basically, the audit team just needs to verify that all […]