Question 1d i
Marking Guide
| up to 1 mark | per well described substantive procedure |
| $5 million expenditure incurred on improving the factory production process | |
– obtain a schedule of the $5 million expenditure and cast | |
– for capital items, agree to purchase invoices and ascertain if they are in fact of a capital nature | |
– for capital items, agree to the non-current assets register to ensure that they are correctly included | |
– for capital items, recalculate the depreciation charged to ensure it has been appropriately time apportioned | |
– for items treated as repairs, vouch to invoices and that correctly expensed to profit or loss | |
| (Maximum 3 marks) |