Answer the following questions based on the information for Cloud 9 presented in the appendix to this text, as well as the current and earlier chapters. You should also consider your answers to the case study questions in earlier chapters.

You have obtained the following information about property, plant, and equipment for Cloud 9.

	Property, Plant, and Equipment
	Balance January 31, 2022	Acquisitions	Disposals	Balance January 31, 2023
Property, plant, and equipment	$100,065,433	$9,451,131	$1,813,390	$107,703,174
Assets audited by W&S Partners	$78,951,627	$7,468,810	$1,405,165	$85,015,272
Assets audited by other auditors	21,113,806	1,982,321	408,225	22,687,902
	$100,065,433	$9,451,131	$1,813,390	$107,703,174

	Accumulated Depreciation
	Beginning January 31, 2022	Depreciation Expense	Disposals	Ending January 31, 2023
Accumulated depreciation	$37,803,894	$5,576,162	$1,153,117	$42,226,939
Assets audited by W&S Partners	$29,180,183	$4,383,307	$895,992	$32,667,498
Assets audited by other auditors	8,623,711	1,192,855	257,125	9,559,441
	$37,803,894	$5,576,162	$1,153,117	$42,226,939

Required

1. a. You are auditing the acquisition of property, plant, and equipment. Explain the audit procedures to audit the following assertions.

1. Occurrence of acquisitions of property, plant, and equipment.
2. Accuracy of acquisitions of property, plant, and equipment.
3. Completeness of acquisitions of property, plant, and equipment.

1. b. You are auditing the disposals of property, plant, and equipment. Explain the audit procedures to audit the following assertions.

1. Occurrence of disposals of property, plant, and equipment.
2. Accuracy of disposals of property, plant, and equipment.
3. Completeness of disposals of property, plant, and equipment.

1. c. How does auditing the disposals of property, plant, and equipment provide evidence related to depreciation expense?
2. d. You select the following sample of acquisitions of property, plant, and equipment. What can you conclude about the acquisitions of property, plant, and equipment from this evidence? Tolerable misstatement for property, plant, and equipment is $1 million.

Stratum		Book Value of Population	Size of Stratum	Size of Sample	Book Value of Sample	Audited Value of Sample
1	> $750,000	$2,678,016	4	4	$2,678,016	$3,143,213
2	$250,000 $750,000	2,343,151	6	3	1,231,576	1,231,576
3	< $250,000	2,447,643	27	10	932,534	932,534
		$7,468,810			$4,842,126	$5,307,323