A division of your company purchased a large quantity of new desktop computers during the current fiscal year. An internal audit manager has asked you to audit the process used to acquire the computers. He also wants you to determine whether the computers have been used properly and accounted for correctly. The manager specified a set of audit objectives to guide your tests. For example, he wants you to determine whether:
1. The purchases of the computers were properly authorized.
2. Responsibilities regarding the computers are properly segregated.
3. The computers, as well as the software and information they contain, are properly safeguarded. Consider both physical and logical access.
4. Laws and regulations regarding software usage have been complied with.
5. The computers recorded as being purchased actually exist.
6. All of the computers that were purchased have been recorded.
7. The amounts at which the computers are recorded are correct.
8. The estimated useful lives and salvage values of the computers are reasonable.
9. Depreciation expense was calculated correctly.
a. Describe the procedures you might use to gain an understanding of how the computers were acquired, used, and accounted for.
b. Describe the audit procedure(s) you might use to achieve each of the audit objectives listed above. Be specific.