Case 7: Substantive audit procedures

Saleem & Company are a firm of independent auditors that are currently auditing the financial statements of Madac Construction LLC, for the year ended 31^stDecember 2019. Madac's financial statements reflect a substantial amount of mobile construction equipment used in the firm's constructions operations. The equipment is accounted for in a subsidiary ledger. The auditor has developed an understanding of internal control system of Madac and set the control risk at a moderate level.

Required:

Identify the substantive audit procedures the auditor should use in examining mobile construction equipment and related depreciation in Madac's financial statements.