This chapter, non-current assets, highlights the key objectives for each major component of non current assets. You must understand what objectives the various procedures are designed to achieve in relation to the financial statement of the assertions.
Assertions could be the focus of questions: you could be asked to describe all these procedures to test one particular assertion, or to identify the assertions relevant to the audit of tangible non-current assets, or indeed both. Both audit procedures and assertions can be tested in the form of OTQs in section A as well as in the long scenario questions in section B. Make sure you can distinguish the assertions relating to the statement of financial position and statement of profits and loss.
Valuation is an important assertion. The auditors will concentrate on testing any external evaluations made during the year, and also whether other values appear reasonable given asset usage and condition. An important aspect of testing regulation is reviewing depreciation rates. A topic we cover, using the work of an expert, may well be important in the audit of non current-assets in respect of violation.
you will need knowledge of the accounting standards you learnt in your Fundamentals Financial Accounting (FFA) relating to tangible and intangible non-current assets for this chapter.
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