What is the formula for non-current assets?

Non-current assets are valued at cost minus depreciation amount.

How do you confirm non-current assets?

Completeness

1. Get the NCA register (showing cost, additions, disposals, revaluations, impairments, depreciation)
2. Check the opening balances agree to FS P/Y.
3. Check a sample of assets that definitely exist to the register.
4. Check register to ledger balances.

What are substantive procedures for PPE audit?

In the audit procedures for PPE, we need to test various audit assertions, including existence, valuation, completeness and rights and obligations….Completeness

• Reconcile and compare the PPE register with the general ledger.
• Select a sample of PPE items that physically exist.
• Trace the selected items to the PPE register.

What are the substantive procedures for inventory?

Substantive procedures During the inventory count select a sample of assets recorded in the inventory records and agree to the warehouse to confirm the assets exist. Obtain a sample of pre year-end goods despatch notes and agree that these finished goods are excluded from the inventory records.

What is non-current assets give examples?

Noncurrent assets are a company’s long-term investments that are not easily converted to cash or are not expected to become cash within an accounting year. Examples of noncurrent assets include investments, intellectual property, real estate, and equipment.

What are non-current assets examples?

Examples of Noncurrent Assets

• Cash surrender value of life insurance.
• Long-term investments.
• Intangible fixed assets (such as patents)
• Tangible fixed assets (such as equipment and real estate)
• Goodwill.

What are non current assets give two examples?

Examples of noncurrent assets include investments, intellectual property, real estate, and equipment. Noncurrent assets appear on a company’s balance sheet.

What are the 7 audit assertions?

Companies must attest to assertions of existence, completeness, rights and obligations, accuracy and valuation, and presentation and disclosure.

How do you do substantive procedures?

Examples of Substantive Procedures

1. Bank confirmation.
2. Accounts receivable confirmation.
3. Inquire of management regarding the collectibility of customer accounts.
4. Match customer orders to invoices billed.
5. Match collected funds to invoices billed.
6. Observe a physical inventory count.
7. Confirm inventories not on-site.

What is meant by substantive procedures in auditing?

Substantive procedures (or substantive tests) are those activities performed by the auditor to detect material misstatement or fraud at the assertion level. The different assertions of balances are: existence, rights and obligations, validity, and.

What are the two types of substantive procedures?

SUBSTANTIVE TESTS are those activities performed by the auditor to detect material misstatement or fraud related to transactions or account balances. There are two categories of substantive tests – analytical procedures and tests of detail.

What are the three types of substantive tests?

The three types of substantive tests are analytical procedures, a test of details of transactions, and tests of details of balances.

What are substantive procedures for auditing non current assets?

Below are the a few substantive procedures to consider when auditing NCA’s (Non current assets). First, lets deal with tangible NCA’s. For each audit assertion, a number of substantive procedures can be performed as listed below

How to obtain a summary of non-current assets?

 Obtain summary of all non-current assets under the categories shown in the balance sheet.  Check casting and compare the opening balance brought forward from previous year.  Obtain schedules of addition during the year for all classes of assets (including intangible assets)

What are the substantive procedures for closing balance?

Substantive Procedures for Closing Balance: 1. Obtain list of all fixed asset at year end and agree with fixed assets’ schedule and fixed assets register (Completeness and Occurrence). 2. Select a sample of assets from non-current assets’ register and: a. physically inspect them. (Existence). 2 By: M. Asif, ACA 3.

What is the analytical procedure for fixed assets?

Substantive Analytical Procedures for Fixed Assets The analytical procedure is the audit procedure that we use in all stages of the audit by looking at the trend, ratio, and the relationship between data, etc.