Financial Audit Procedures - Non Current Assets

Explore audit procedures for non-current assets, including testing tangible and intangible assets, depreciation, impairment, purchase price allocation, and related disclosures to assess material misstatement risks.

Audit test for intangible assets examines existence, completeness, and amortization accuracy, using disposal and capitalization procedures, net book value reconciliations, and category level movement analysis.

Verify tangible assets' existence, accuracy, and depreciation through physical counts, asset registers, capitalization and disposal checks, and reconcile opening and closing net book values.

examine impairment by fair value for non-current assets using market, cost, and income approaches. identify input levels, compute fair value and cost of disposal, and determine carrying amounts.

Explore impairment testing by value in use for non-current assets, including cash flow forecasts, weighted average cost of capital, and discounted cash flow to determine carrying amounts and potential write-downs.

Audit test for investments uses equity and cost methods to verify carrying amounts, assess impairment indicators, and reconcile with the investment’s budget or business plan and financial statements.

Learn how auditors verify the amortized cost calculation of financial instruments by performing an independent computation, reconciling contracts, and ensuring complete, accurate classification and disclosure in the financial statements.

The video demonstrates how auditors test income and deferred tax, reviewing confirmation letters from tax consultants, assessing tax issues, and reconciling income tax and deferred tax computations with balances.

Explore audit procedures for financial assets, covering ownership, movements, valuation, impairment, and existence, with sample testing, confirmations, reconciliations, and disposal considerations under applicable frameworks.

Learn how to audit the discounted present value of financial instruments by testing the discount rate, validating calculations, and reviewing the underlying contract or invoice for accurate financial statements.

Verify the existence and accuracy of financial assets, loans, and interest income through confirmations and loan contracts. Reconcile loan data with the balance sheet and test cash flows for adjustments.

Review the covenants in financial assets, verify their classification and valuation of loans, assess recoverability and impairment, and confirm disclosures and comparability.