Fixed Assets Slide

AUDIT TRAINING

Fixed Assets AUDIT

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Overview

♦ Introduction ♦ VAS ♦ Circular 206 ♦ Objectives ♦ Work to do ♦ Documentation ♦ Example

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VAS

♦ Please take your time to read VAS number 3 and 4 regarding “Tangible fixed assets” and “Intangible fixed assets”

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Circular 206

♦ This circular is very important for new A2, please take your time to read it at least once.

♦ Noted that the useful life in this circular is not

mandatory, it was only a source for reference and was used to calculate tax only. Accountant may use difference useful life based on their own knowledge about the business.

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Objectives

♦ To obtain sufficient evidences that Fixed Assets was not significantly misstated.

♦ In this case, sufficient evidences mean client has recorded properly: - History cost - Accumulated depreciation - CIP

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Work to do ♦ Preparing the leadsheet - Tied the opening balance with last year FS. - Extract the ending balance from Master leadsheet or TB. - Extract the addition/disposal fixed assets from Fixed Asset Register.

♦ Vouching the addition/disposal fixed assets - Choose significant items which has balance greater than 10% of the net fixed assets balance. - Choose significant items using a scope decided by senior.

♦ Perform depreciation reasonableness test ♦ Perform fixed assets sighting (only in special cases) ♦ Other audit procedures (would be advised by senior) © [year] [legal member firm name], a [jurisdiction] [legal structure] and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in [country in which the publication will be printed]. FOR INTERNAL USE ONLY

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Documentation

♦ Prepare AP using the format provided in vector 2009. ♦ Modifying last year Working Paper (WP) to save the time.

♦ Rounding up all the figure in the leadsheet. ♦ Read the note regarding Fixed assets section in the

last year FS to know what the required information for disclosure is.

♦ Reviewing your own WP before printing.

© [year] [legal member firm name], a [jurisdiction] [legal structure] and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in [country in which the publication will be printed]. FOR INTERNAL USE ONLY

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