UNIVERSITY OF BELIZE

AUDIT & ASSURANCE 2 TEST NAME Brianna Gilharry

AUDITING OF FIXED ASSET SCHEDULE

INSTRUCTIONS:

1 RENAME FILE WITH YOUR NAME AT THE END

2 ENTER YOUR NAME ABOVE

3 FOR THE MULTIPLE CHOICE SECTION

IDENTIFY THE BEST ANSWER BY UNDERLINE OR INDICATE LETTE

4 FOR THE PROBLEM SECTION

PROVIDE ALL WORKINGS

5 REMEMBER TO SAVE SAVE SAVE YOUR FILE SO YOU DO NOT LOSE

6 REVIEW THAT YOU HAVE ANSWERED ALL QUESTIONS AND PROBL

7 MAKE SURE FILE HAS YOUR NAME AND THEN SEND FILE WITH YO
R INDICATE LETTER

O YOU DO NOT LOSE WORKINGS

STIONS AND PROBLEMS

END FILE WITH YOUR ANSWERS

UNIVERSITY OF BELIZE
AUDIT & ASSURANCE 2 TEST
AUDITING OF FIXED ASSET SCHEDULE

BEFORE 45 MINS BONUS 10 PTS

45 TO 90 MINS 100%

90 TO 120 MINS MINUS 20 PTS

OVER 120 MINS MINUS 25 PTS

TEST SECTIONS

FIXED ASSET SCHEDULE 70 PTS

ENTRIES 15 PTS
MULTIPLE CHOICES 15 PTS
105 PTS
PROPERTY PLANT & EQUIPMENT

Fixed assets are stated at cost less accumulated depreciation . Additions, major renewals and im
Maintenance and repairs are charged against revenue in the year incurred

Freehold and leasehold properties, excluding land, are depreciated on the straight line basis over

Plant and equipment are depreciated on a straight line basis over their estimated useful lives
When items are disposed of, the cost and related accumulated depreciation are removed
from the accounts and the resulting gain or loss on disposals is reflectred in the results of operati

Depreciation is calculated on a monthly basis, full month depreciation in month of acquistion and

Property , Plant and Equipment

The estimated useful lives for current and comparative years of significant items of property, plan

Buildings 40 years

Motor vehicle 4 years

Office Equipment 10 years

Computer Hardware & Software 3 years

Land improvements 40 yrs

 ajor renewals and improvements are capitalized.

traight line basis over their estimated useful lives

mated useful lives

are removed
the results of operations

onth of acquistion and none in month of disposal

tems of property, plant , and equpment are as follows:

FOR YEAR 2019

ADDITIONS :

2018 Ford Runner Black 45,000.00

purchased May 1

2- Dell Computers 2,400.00

purchased April 2

1- 2 door Hotpoint Fridge 1,900.00

purchased May 10

2- Work Stations -Staff 2,400.00

purchased August 15

1- Filing Cabinet Large 750.00

1- Filing Cabinet small 275.00
purchased Oct 25

Car Park work was contracted out

and completed Sept 15 35,600.00

Additional amount spent 37,500.00

on constructing new office bldg
not completed at end of year
Work on new building was started last year

DISPOSALS:

2018 Mitsubshi White sold for $25,000 Dr Bank/cash 25,000

Sold March 31

2014 Ford Runner Blue sold for $15,000 Dr bank/cash15,000

Sold Aug 15

Acros fridge was giving problems

and was tendered out for sale proceeds of $ 300 received
sold May 15

Boat shed caught on fire and completely destroyed April 10

Insurance claim made but insurance company moving slowly on claim
END OF YEAR CLIAM STILL OUTSTANDING
CR Motor Vechile 25,000
cr Ford Runner 15,000+H55
ABC Limited
Fixed Asset Schedule
For Year ended December 31,2019

COST ADDTIONS
ASSET DESCRIPTION 1-Jan FOR YEAR
Date
MOTOR VEHICLES
2013 Mitsubishi White 60,000.00 -
2014 Mitsubishi Black 60,000.00 -
2013 Land Cruiser Grey 125,000.00 -
2013 Melium Street Bike Red 2,400.00
2012 Lincoln Town Car Black 35,000.00
2014 Ford Runner Blue 45,000.00 -
2015 Ford Runner Black 1-May 45,000.00

TOTAL MOTOR VEHICLES 327,400.00 45,000.00

OFFICE EQUIPMENT
1-Sharp Copying Machine 4,500.00
2- Cameras Surveilance-Maya 2,600.00
1-2 Door Acros Fridge 1,265.00
1- GE Air Condition 1,750.00
1- 112 BTU Mini Split 2,600.00
4- Monroe Calculators 700.00
1- Hoover Vacuum 780.00
1- TY Shredder 680.00
1- Voltage Regulator 2,100.00
1-Oster Microwave 950.00
2- Dell Computers 2-Apr 2,560.00
1-2 Door Hotpoint Fridge 10-May 1,700.00
2- Work Stations 15-Aug 2,400.00
1- Filing Cabinet Large 25-Oct 750.00
1- Filing Cabinet small 25-Oct 275.00

TOTAL OFFICE EQUIPMENT 17,925.00 (7,685.00)

COMPUTER HARDWARE & SOFTWARE

3 UPS -650 1,500.00
PROGRAMMING SOFTWARE 7,190.00
PALM HELD PDA 1,500.00
1 COMPUTER 8,440.00
1 PRINTER 15,700.00
1 CHUBB SAFE BANKERS SAFE 22,525.00
FMP DATABASE SYSTEM 11,100.00
CONSULTING SERVICES IT TECHNICIAN 7,500.00
HP 4200 TN LASER JET 4,600.00

TOTAL CCOMPUTER HARDWARE & SOFTWARE 97,980.00

BUILDINGS
ABC Building 1,865,218.45
BCD Building 445,694.00
Boat Shed 3,222.00
Warehouse Building 91,739.17
New Office Building -WIP 137,485.00 37,500.00

TOTAL BUILDINGS

LAND
LAND - BELIZE CITY 175,000.00
LAND - COROZAL 65,000.00
CAR PARK - BZE OFFICE 35,600.00

TOTAL LAND 210,600.00

TOTAL BUILDINGS 2,405,873.62 -

SUMMARY
MOTOR VEHICLES 327,400.00 45,000.00
OFFICE EQUIPMENT 17,925.00 (7,685.00)
BUILDINGS 2,405,873.62 -

GRAND TOTALS 2,751,198.62 37,315.00

 REQUIRED

YOU HAVE RECEIEVED ABOVE FIXED ASSET SCHEDULE FROM CLIENT

CLIENT SAYS THEIR ACCOUNTANT LEFT BEFORE END OF YEAR
THEY HAD TO USE A JUNIOR TO PREPARE ABOVE AND THERE ARE LIKELY ERRORS

1) FIND AND NOTE ALL ERRORS ON ABOVE FIXED ASSET SCHEDULE HIGHLIGHT SAME

2) PREPARE A CORRECTED FIXED ASSET SCHEDULE HIGHLIGTING WHERE THERE ARE CHANGES
HIGHLIGHT IN RED IS GOOD

3) RECORD AND NOTE AREAS FOR FURTHER DISCUSION WITH CLIENT

BE PREPARED TO OFFER CLIENT ALTERNATIVES OR OPTIONS WHERE RELEVANT

4) PREPARE ENTREIS FOR THE ADDITIONS AND DISPOALS FOR THE YEAR
AND POSSIBLE ADJUSTING ENTRIES END OF YEAR
 ACCUMULATED DISPOSAL
DISPOSALS COST DEPR DEPRECIATION DEPRECIATION DEPRECIATION
FOR YEAR 31-Dec RATE 1-Jan FOR YEAR FOR YEAR

(60,000.00) - 25% 45,000.00 - (45,000.00)

- 60,000.00 25% 45,000.00 15,000.00 -
- 125,000.00 25% 62,500.00 31,250.00 -
2,400.00 25% 1,200.00 590
35,000.00 25% 14,000.00 8,750.00
- 45,000.00 25% 22,500.00 11,250.00
45,000.00 25% - 11,250.00

(60,000.00) 432,400.00 190,200.00 78,090.40 (45,000.00)

4,500.00 10% 2,250.00 450.00

2,600.00 10% 1,760.00 260.00
(1,265.00) - 10% 759.00 - (759.00)
1,750.00 10% 1,050.00 175.00
2,600.00 10% 1,560.00 260.00
700.00 10% 280.00 70.00
780.00 10% 468.00 78.00
680.00 10% 204.00 68.00
2,100.00 10% 800.00 210.00
950.00 10% 285.00 95.00
2,400.00 10% - 80.00
1,900.00 10% - 79.17
2,400.00 10% - 160.00
750.00 10% - 62.50
275.00 10% - 22.92

(1,265.00) 16,660.00 9,416.00 2,070.58 (759.00)

1,500.00 33% 500.00 500.00

7,190.00 33% 2,396.67 2,396.67
1,500.00 33% 500.00 500.00
 8,440.00 33% 2,813.33 2,813.33
15,700.00 33% 5,233.33 5,233.33
22,525.00 33% 7,508.33 7,508.33
11,100.00 33% 3,700.00 3,700.00
7,500.00 33% 2,500.00 2,500.00
4,600.00 33% 1,533.00 1,533.33

97,980.00 26,684.66 26,685.00

1,865,218.45 2% 324,449.86 37,304.37

445,694.00 2% 136,699.81 8,913.88
(3,222.00) - 5% 490.20 - (490.20)
91,739.17 5% 13,673.92 4,586.96
174,985.00 2% 2,749.70 750.00

175,000.00
65,000.00
35,600.00

210,600.00

(3,222.00) 2,402,651.62 478,063.49 51,555.21 (490.20)

(60,000.00) 432,400.00 190,200.00 78,090.40 (45,000.00)

(1,265.00) 16,660.00 9,416.00 2,070.58 (759.00)
(3,222.00) 2,402,651.62 478,063.49 51,555.21 (490.20)

(64,487.00) 2,851,711.62 677,679.49 131,716.19 (46,249.20)

M CLIENT

ARE LIKELY ERRORS

GHT SAME

HERE ARE CHANGES 70 PTS

5 PTS

15 PTS
ACCUMULATED NET NET
DEPRECIAITION BOOK VALUE BOOK VALUE
31-Dec 12/31/2017 12/31/2018

- 15,000.00 -
60,000.00 15,000.00 -
93,750.00 62,500.00 31,250.00
1,200.00 2,400.00
21,000.00 35,000.00
33,750.00 22,500.00 11,250.00
11,250.00 - 33,750.00

198,750.00 137,200.00 113,650.00

2,700.00 2,250.00 1,800.00

2,020.00 840.00 580.00
- 506.00 -
1,225.00 700.00 525.00
1,820.00 1,040.00 780.00
350.00 420.00 350.00
546.00 312.00 234.00
272.00 476.00 408.00
1,010.00 1,300.00 1,090.00
380.00 665.00 570.00
80.00 - 2,320.00
79.17 - 1,820.83
160.00 - 2,240.00
62.50 - 687.50
22.92 - 252.08

10,727.58 8,509.00 13,657.42

1,000.00 1,000.00 2,000.00

4,793.33 4,793.33 9,586.67
1,000.00 1,000.00 2,000.00
 5,626.67 5,626.67 11,253.33
10,466.66 10,466.67 20,933.33
15,016.67 15,016.67 30,033.33
7,400.00 7,400.00 14,800.00
5,000.00 5,000.00 10,000.00
3,066.33 3,067.00 6,133.33

53,369.66 71,295.34 124,665.00

361,754.23 1,540,768.59 1,503,464.22

145,613.69 308,994.19 300,080.31
- 2,731.80 -
18,260.88 78,065.25 73,478.29
3,499.70 134,735.30 171,485.30

175,000.00 175,000.00
65,000.00 65,000.00
35,600.00 35,600.00

210,600.00 210,600.00

525,628.79 1,930,559.83 1,877,022.83

198,750.00 137,200.00 113,650.00

10,727.58 8,509.00 13,657.42
525,628.79 1,930,559.83 1,877,022.83

735,106.38 2,076,268.83 2,004,330.24

EN
University of Belize
Audit and Investigation 2
FixeAsset - Audit Test 3 1.5 pts each TOTAL OF 15 PTS

1) What financial statement assertion is being addressed

by naking sure the entity has legal title or similar
rights of ownership in auditing the fixed asset schedule

a) Completenesss
b) Existence
c) Valuation
d) Rights and obligation

2) What financial statement assertion is being addressed

by making sure that depreciation calculations are made
using prooer estimated useful lives and methods

a) Completenesss
b) Existence
c) Valuation
d) Rights and obligation

3) In the audit procedure to recompute

gain or loss on disposal the amount should be agreed :

a) to the fixed asset schedule

b) to the board of directors minutes
c) to the amount depositied in the bank
d) to the expense/revenue account

4) What type of audit test is being done by comparing

depreciation provision for current period with that or prior year

a) Documentation
b) test of controls
c) inquiry
d) substantive analytical procedure

5) Which of the following expense account is normally tested along

with fixed asset audit procedures for testing completeness
 a) Electricity expense
b) Salaries and wages
c) reparis and maintenance
d) none of the above

6) Normally it may be unnecessary to examine supporting documentation for each addition to

property, plant, and equipment, but it would be customary to verify

a) All large transactions

b) All unusual transactions
c) A representative sample of typical additions
d) All of the above

7) Failure to capitalize a fixed asset at the correct amount would impact which financial statements?
a) The Balance Sheet only
b) The Income Statement only
c) The Cash Flow Statement
d) Both the Income Statement and Balance Sheet

8) In testing acquisitions the auditor needs to understand the appropriate accounting guidance
related to acquisition accounting. Which of the following is not an accounting consideration
for the auditor as regards to acquisition cost?

a) inclusion of material transportation and installation costs

b) recording of trade-in costs
c) allocating costs when building and equipment are purchased at one price
d) verifying that purchased equipment amounts correspond to the budgeted amount

9) When the auditor is determining whether the client followed a consistent depreciation policy
from period to period, and the client's depreciation calculations are correct, the balance-related
audit objective of ________ is being determined for depreciation expense.

a) Completenesss
b) Existence
c) Classification
d) Accuracy

10) The auditor needs to gain reasonable assurance that the equipment accounts in the fixed asset master
file are not understated. Which of the following accounts would most likely be reviewed
in making that determination?
a) Depreciation expense
b) Repairs and Maintenance expense
c) gains losses on sales and retirements
d) Cash
ancial statements?

g guidance
consideration

ciation policy
balance-related

he fixed asset master