AP$13\mathrm{.}11($LO $3)$ Substantive testing of PPE Fabrication Holdings Inc. $($FH$)$ has been a client of KFP LLP for

many years. You are an audit senior and have been assigned to the FH audit for the first time for the

financial year$-$end June $30,2022.$ During March $2022,$ you are completing the risk assessment for PPE,

which is one of FH$\text{'}$s most material accounts. You are also aware that FH has made a large investment in

a new manufacturing process to place itself in a more competitive position. Your analytical procedures

indicate an increase in acquisitions of PPE.

Required

a$.$ What is the key assertion at risk for the PPE additions? Why is it at risk? Explain.

b$.$ Identify the relevant substantive tests of details that would be appropriate to address the assertion at

risk identified in $($a$)$ above.

c$.$ How would your answers to the previous questions change if the PPE additions had been

manufactured in$-$house by FH$\text{'}$s engineers and toolmakers, rather than purchased