AUE3761 ASSIGNMENT 03 OF 2021
1. Substantive audit procedures to obtain audit evidence in respect of the
occurrence assertion for additions and disposal of mini trucks
Additions
➢ Select a sample of additions of mini trucks from the fixed asset register and trace
them to capital budget, minutes of directors’ meetings and purchase requisitions
for evidence of authority for the acquisition of the mini trucks;
➢ Inspect mini trucks acquired during the year and cross-reference description,
serial number, etc., to purchase invoices, receipts obtained from suppliers or
purchase contracts;
➢ Inspect the asset register and purchase documentation and verify that the
registration numbers of additions are not the same as the ones for mini trucks
which were already available prior to current year;
➢ Inspect the purchase invoice or purchase contract to confirm that it they are
made out to Living Well (Pty) Ltd and is for the selected mini trucks and is
signed; and
➢ Inspect payment records to confirm that payment was made for the mini trucks.
Disposals
➢ Inspect the disposal documentation, such as directors` meeting minutes used to
approve the disposal for an authorising signature;
➢ Trace the disposal by reference to the capital budget, confirm authorisation for
the disposal of the mini trucks;
➢ Trace the proceeds of the sale to the receipts` records or bank stamped deposit
slip or bank statement;
➢ Inspect the receipts and contracts of sell and confirm that they were generated
1. Substantive audit procedures to obtain audit evidence in respect of the
occurrence assertion for additions and disposal of mini trucks
Additions
➢ Select a sample of additions of mini trucks from the fixed asset register and trace
them to capital budget, minutes of directors’ meetings and purchase requisitions
for evidence of authority for the acquisition of the mini trucks;
➢ Inspect mini trucks acquired during the year and cross-reference description,
serial number, etc., to purchase invoices, receipts obtained from suppliers or
purchase contracts;
➢ Inspect the asset register and purchase documentation and verify that the
registration numbers of additions are not the same as the ones for mini trucks
which were already available prior to current year;
➢ Inspect the purchase invoice or purchase contract to confirm that it they are
made out to Living Well (Pty) Ltd and is for the selected mini trucks and is
signed; and
➢ Inspect payment records to confirm that payment was made for the mini trucks.
Disposals
➢ Inspect the disposal documentation, such as directors` meeting minutes used to
approve the disposal for an authorising signature;
➢ Trace the disposal by reference to the capital budget, confirm authorisation for
the disposal of the mini trucks;
➢ Trace the proceeds of the sale to the receipts` records or bank stamped deposit
slip or bank statement;
➢ Inspect the receipts and contracts of sell and confirm that they were generated
