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8 Cards in this Set
- Front
- Back
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Substantive Testing of PPE
(CAVE CROC) Completeness |
tested by reconciling subsidiary records for cost; current depr exp, calculating and comparing ratios for current period with those of prior periods and industry norms, vouching debits from repairs & maintenance esp
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Substantive Testing of PPE
(CAVE CROC) Accuracy |
tested by obtaining mgt representation letter that includes assertions relating to amounts & classifications
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Substantive Testing of PPE
(CAVE CROC) Valuation & Allocation |
tested by vouching PPE purchase entries to pymt records; vouching additions and disposals; testing depr methods and their application to determine that they are generally accepted and applied consistently
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Substantive Testing of PPE
(CAVE CROC) Existence |
tested by vouching sample from recorded asset additions by examining supporting documents & inspecting the physical assets; inspecting significant assets in beg bal as well as additions
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Substantive Testing of PPE
(CAVE CROC) Cutoff |
tested by examining additions and disposal near year end to assure recording in proper periods
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Substantive Testing of PPE
(CAVE CROC) Rights & Obligations |
tested by examining titles & leases; inspecting insurance policies; and inspecting property tax records
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Substantive Testing of PPE
(CAVE CROC) Occurrence |
tested by verifying authorization, execution, recording, and custody aspects of a sample of transactions
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Substantive Testing of PPE
(CAVE CROC) Classification & Understandability |
tested by reading the financial statements to determine that ppe is properly reported as a long-term asset at historical cost net of acc depr and making inquires of mgt regarding appropriate note disclosures and other reporting issues
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