Nova Land Development Corporation is a closely held corporation engaged in purchasing large tracts of land, subdividing the tracts, and installing paved streets and utilities. The corporation does not construct buildings for the buyers of the land and does not have any affiliated construction companies. Undeveloped land usually is leased for farming until the corporation is ready to begin developing it.

The corporation finances its land acquisitions by mortgages; the mortgagees require audited financial statements. This is your first audit of the company, and you have now begun the audit of the financial statements for the year ended December 31.

Required:

The corporation has three tracts of land in various stages of development. List the audit procedures to be employed in the verification of the physical existence and title of the corporation’s three landholdings.