1 Describe the procedures you would adopt in verifying: (a). a general allowance for bad debts (b). a specific allowance for bad debts. Question 2 Describe audit procedures to ensure: a. the accuracy of the summary of property, plant and equipment b. all items of a capital expenditure are included in additions for the year and that no revenue expenditure has been capitalised c. the depreciation rates are calculated appropriately. Question 3 a. What control could be implemented to reduce the likelihood of each of the below? b. What is an audit procedure to detect each of the below? You have spent 2 years working as an auditor. In that time you have come across a number of errors in performing bank reconciliations. Oulined below are some of them. 1. An unreconciled item of $300 was on the final bank reconciliation of the client and was deemed by the client to be immaterial. 2. An amount from an associated company of $40,000 was banked 2 days before the end of the year in the client's bank account and then paid back 1 week after the end of the year. 3. A cheque for $5000 was omitted from the outstanding cheque list on the bank reconciliation at 30 June. It cleared the bank on 14 August. 4. A bank transfer of $20,000 was included as a deposit in transit at 30 June in the accounting records