In this assignment, you will prepare a 2–3 page professional document that fully addresses the requirements specified in the case. Include at least two current references to scholarly and/or...

In this assignment, you will prepare a 2–3 page professional document that fully addresses the requirements specified in the case. Include at least two current references to scholarly and/or authoritative sources.

Instructions

Specifically you will need to:

1. Explain the audit procedures for acquisition and disposal of property, plant, and equipment related to the occurrence, accuracy, and completion assertions.


2. Using examples, explain and demonstrate how auditing the disposal of property, plant, and equipment provides evidence of depreciation expense.


3. Form conclusions about a selected sample of acquisitions of property, plant, and equipment.


4. Use at least two current, quality academic or authoritative sources in this assignment.Note:Wikipedia and similar websites do not qualify as quality scholarly and/or authoritative sources. Use theStrayer University Libraryto conduct your research.

Suzie and Ian are continuing their work on the substantive audit testing program for the Cloud 9 audit. Suzie convinced Ian that analytical procedures are not the only substantive tests they will need. They will need to consider how audit risk and other factors impact the appropriateness of analytical procedures for each area of the audit, and include other substantive tests where required.

Today, they are focusing on asset and liability accounts. Significant accounts on Cloud 9's trial balance that they have not yet addressed include cash; inventory; property, plant, and equipment (PPE) (mainly furniture and equipment and leasehold improvements); as well as long-term debt and stockholders' equity accounts.

Suzie asks Ian to suggest the key factors that they will consider when designing the substantive test program for each of these accounts, as well as which procedures they will choose to include in the program.