AUDIT PROGRAM FOR PROPERTY, PLANT AND EQUIPMENT

Index Reference ___________

Client Name: Grace Corporation Date of Audit: ____________

Staff In-Charge:

Audit In-Charge:

Year-End Audit Date:

AUDIT OBJECTIVES AND AUDIT ASSERTIONS

AUDIT OBJECTIVES AUDIT ASSERTIONS

To determine that property, plant, and Existence, Completeness, Rights and
equipment reflected in the accounts represent a Obligations
complete listing of capitalizable cost of assets
purchased, constructed or leased by the
company, and such assets are physically on
hand.
To determine that property, plant, and Valuation and Allocation
equipment are valued at cost in accordance
with GAAP.
To determine that the costs and related Existence, Completeness, Valuation and
depreciation applicable to all sold, abandoned, Allocation
damaged, or obsolete property have been
properly removed from the accounts.
To determine that depreciation charged to Valuation and Allocation
income during the period is adequate but not
excessive and has been computed on an
acceptable basis consistent with that used in
prior years.
 To determine that the balances in the Valuation and Allocation
depreciation allowance accounts are
reasonable, considering the expected useful
lives of the property units and estimated
salvage value.
To determine that property is properly Presentation and Disclosure
classified in the balance sheet, and liens,
significant fully depreciated assets, idle
property, and property held for investment
purposes are properly disclosed.

Audit Procedures Done By Date Done Reviewed By

Perform analytical procedures.

Obtained a list of property, plant, and

equipment from the client.

Vouch purchases of property, plant

and equipment and investigate
disposals.

Examine evidences of legal

ownership.
 Examine any lease agreements and
the lease terms of agreements.

Conduct physical inspection and

reconcile with the list of property,
plant and equipment.

Obtain an analysis of the depreciation

for the year.
a. Perform analytical procedures to
test the reasonableness.
b. Perform Recalculations

Analyze maintenance and repairs

accounts.

Prepare depreciation schedule records

and reconcile with the record
provided by the entity.

Test for impairment of property, plant

and equipment.
a. Determine if the management
properly identified indicators of
impairments.
b. Determine the assumptions made
by the entity regarding impairments.
 c. Determine if impairments are
properly recognized and recorded.

Review of minutes of the meetings

and other documents related to the
property, plant and equipment to
determine ownership and other
relevant information.

Identify idle property and obsolete

plant and equipment and determine
proper accounting application.

Determine the insurance coverage.

a. Note the contracts of insurance.

Determine that property, plant and

equipment are carried at proper
amounts.

Determine if property, plant and

equipment are properly classified in
the financial statements and relevant
disclosures as required by PFRS are
followed.