Auditing Held for Sale

NotesPaper exam

Audit procedures & Evidence needed as follows

Procedures Include:

  1. Inspect board minute at which the disposal of the properties was agreed by management

  2. Ensure active programme to locate a buyer, for example, instructions given to real estate agency

  3. Inspect any minutes of meetings held with prospective purchasers of any of the properties, or copies of correspondence
    with them

  4. Written representation from management on the opinion that the assets will be sold within a year

  5. Subsequent events review, including a review of post year-end board minutes and a review of significant cash transactions, to confirm if any properties are sold in the period after the year end

  6. Review client’s depreciation calculations, to confirm no depreciation once reclassified as held for sale

NotesPaper exam