The Government has decided to offer a grant to all small hotels that have a 100 room capacity or less. The Hotel Mingle's audit programme is currently being prepared by the audit senior. While reviewing the notes from the Finance Director the following issue was noted: Major renovation work was carried out on one section of the building and the company purchased major leisure equipment. The Finance Director has proposed that the new leisure equipment be depreciated over ten years using the straight-line method. Required: Concerning the issue raised, describe substantive procedures to obtain sufficient and appropriate audit evidence.
The Government has decided to offer a grant to all small hotels that have a 100 room capacity or less.
The Hotel Mingle's audit programme is currently being prepared by the audit senior.
While reviewing the notes from the Finance Director the following issue was noted:
Major renovation work was carried out on one section of the building and the company purchased major leisure equipment.
The Finance Director has proposed that the new leisure equipment be depreciated over ten years using the straight-line method.
Required:
Concerning the issue raised, describe substantive procedures to obtain sufficient and appropriate audit evidence.
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