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.