Unload Inc. a transportation company, has property, plant, and equipment consisting of six buses, all of which
Question:
Unload Inc. a transportation company, has property, plant, and equipment consisting of six buses, all of which have been acquired under capital leases. Unload follows ASPE. Required: Complete the table below by describing how the assertion would apply in identifying a risk of a material misstatement to the property, plant, and equipment and capital lease liabilities accounts. The first one is done to provide guidance.
Audit assertion | Property, plant, and equipment | Capital lease liabilities |
Completeness | Have all property, plant, and equipment and all relevant overhauls been included in the financial statements? | Have all capital lease liabilities been identified and included in the financial statements? |
Existence | ||
Rights and obligations | ||
Accuracy, valuation, and allocation | ||
Classification | ||
Presentation |
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw