1. When we audit PPE account, we use an audit approach which is very different from the approach used to audit current assets and current liabilities. Please describe this unique audit approach to audit PPE account.

2. Repair and maintenance expenditure is treated differently as compared with PPE improvement expenditure. Please briefly describe the differences and provide an explanation based on your U.S. GAAP knowledge.

3. What is capital expenditure and what is revenue expenditure? What are the main differences between these two kinds of expenditures?

4. When we audit PPE account (an asset account), we also audit repair and maintenance expense account. Why an expense account is included in the working papers of an asset account?

5. How to perform impairment test for PPE assets? How to calculate impairment loss? Please use your U.S. GAAP knowledge and provide a brief explanation.

6. What is voucher (as used in the A/P accounting cycle)? Why is it useful?

7. For a typical manufacturing company that purchases raw materials for production use, three documents must be ready before a voucher can be prepared and an A/P can be recognized in the accounting system. What are these documents? Who issue those documents? Who will sign the check and mail it to the supplier?

8. Whats the difference between purchase order and purchase requisition form?

9. What is open purchase order? Why it is useful to auditors?

10. Confirmations can be used in the audit of both A/R and A/P. Please describe the differences when confirmations have been used to audit A/R and A/P