Audit procedures on costs of closure

Generally 1 mark per specific procedure, examples given below:

– Review board minutes for discussion and date of decision
– Review detailed, formal plan and date of its approval
– Review any public announcement and the date it was made
– Physically inspect factory prior to year end for evidence of dismantling of assets
– Consider whether costs included are relevant (redundancies and lease cancellation fees are 
the most common type of relevant costs included)
– Agree relevant costs to supporting documentation
– Review note to financial statements for accuracy and completeness

Maximum marks 6