Non-Current Assets Control Objectives , Procedures ®

[Acid]

Hi,

Looking at the past paper analysis its much likely that the Non current assets can one of be the one are which could be examined.

List:


Control objectives of Non current assets
Audit procedures of to applied to non current assets

Good luck.

[Acid]

The auditor would like to make sure that the non-current assets (NCA) which are recorded in assets register does actually exist.
The ownership of those assets is actually with the company as per the managment assertions.
All assets owned are recorded
The assets are recorded at an appropriate value , they shouldnt be over or understated.
When assets are sold so they should be compared against its purchase invoice to ascertain that fair value has been obtained

Can you think of any more?

[Mr.A2Z]

Hi, this is my first post in this forum.
Im confused at the last point.
In related party transactions an asset could be sold at less value.
Then how can we compare it with the Purchase Invoice to ascertain that fair value has been obtained.
I think its market value should be obtained then we can compare the selling price with the market value.

[Acid]

Hi A2Z,

I agree with your point and your point is perfectly correct.

However the reason we should compare against purchase invoice could be to check the original price and estimate the depriciation maybe compare to other industrial depriciation averages and then estimate an fair value.

Because , we should keep in mind that the market value would also be depended on factors like how old is the asset and for how long it has been in use.

So my point and your point are both interrelated and appropriate.

Cheers

[Mr.A2Z]

I got it...:cool:
Thanx for quick response.

[Acid]

Cheers.

I hope that you are enjoying your stay at our forum and I would look forward for your valued contributions.

best of luck with your exams and let us know your result.

[samtecks]

can i also add that proper authorisation is done before the purchase and the sale of a nca.