Audit Procedures for Property, Plant, and Equipment Overview

Audit Procedures for Property, Plant, and Equipment Overview
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Introduction
In this paper, we will discuss the audit procedures for Property Plant and Equipment (PPE). This is also called the audit procedures for Fixed or Non-Current Assets. The property, plant, and equipment are items that usually exist on the balance sheet. It is essential to undertake proper audit procedures for non-current assets to gain enough evidence of their presence or absence (Raymond, 2019). Before discussing the audit procedures for Property Plant and Equipment, we will look at the key assertions for the audit of Property, Plant, and Equipment. The audit of PPEs key assertions as explained below:
Occurrence
Occurrence assertion implies the balance of property, plant, and equipment as they reflect in financial statements on the date of reporting. Any disposal or addition of assets represents those that are sold, scraped, or acquired in the reporting year (Raymond, 2019).
Completeness
Completeness means that any PPEs reported on the balance sheets should include all PPE transactions that occur during the period. Also, any records of disposal or additions during the reporting year should be included (Raymond, 2019).
Accuracy
This assertion implies that all asset disposals and additions should be correctly recorded (Raymond, 2019).
Audit Procedure for the Audit of Property, Plant and Equipment (PPE)
To easily comprehend the kinds of audit procedures for Property, Plant, and Equipment, the audit procedures are grouped into categories as indicated below:
Completeness
In this section, with the help of an auditor, he or she ensures and confirms the audit procedures of the PPE as explained. From the onset, the auditor is tasked with confirming the opening balances with the previous year's financial statements. The review should include the PPE's net book value and accumulated depreciation cost (James, 2019).
The auditor should retrieve the firm's Trial Balance, financial statements, General Ledger, and asset register for the period being audited. It is also vital for the auditor to verify if the Trial Balance and General Ledger are related to the affixed asset book values and reconcile the asset book's value, the Trial balance, General Ledger, and assets register correctly. The auditor should also be able to explain any discrepancies that may be retrieved from the accounting books (Bagley & Harp, 2012).
The auditor should ensure that the fixed assets register is properly maintained and the fixed asset listings are reliable. The auditor will also be tasked with reconciling the books of accounts to ensure that the physical assets reconcile with the physical count as per the assets register (James, 2015).
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