Question

An auditor must take regard for asset verification and related audit procedure when conducting and asset audit. This must include:

1. Supplier shipping documents
2. Verification of existence of the asset
3. Occurrence of the purchase transaction of the asset
4. Tangible inspection of the asset
5. All of the above

Answer 1

e.All of the above

Explanation;

The objective of asset audit is asses the adequacy and effectiveness of internal controls over asset management.The audit procedures included in asset audit are as follows

*Inspection of tangible asset: Inspection of tangible asset by auditors will give the best evidence of the existence of the assets.

*Occurance of purchase transaction of the asset: occurance tests wheather the asset transaction actually took place, it's verified by checking supporting documents such as vendor invoice, purchase agreementagreement and titles

*Verification of existence of asset; Purpose of verification is to ascertain the existence of assetasset, and the verification help to see the actual position of asset.

*Supplier shipping documents; Shipping documents are forms, records, certificates needed to take delivery of shipment.Auditor should verify all these types of documents to confirm the ownership of the asset