An auditor develops specific substantive procedures to test financial statement assertions.

Required:

Items (1) through (7) represent appropriate audit procedure to test assertions for the property and equipment accounts. Determine the most appropriate assertion from the following audit procedures.

Audit Procedure		Specific Assertion
1	Trace opening balances in the summary schedules to the prior years audit working papers.
2	Review the provision for depreciation expense and determine that depreciable lives and methods used in the current year are consistent with those used in the prior year.
3	Determine that the responsibility for maintaining the property and equipment records is segregated from the responsibility for custody of property and equipment.
4	Examine deeds and title insurance certificates.
5	Perform cutoff tests to verify that property and equipment additions are recorded in the proper period.
6	Determine that property and equipment are adequately insured.
7	Physically examine all major property and equipment additions.