Fixed Assets
Date: 26 JAN 201810:24:53+0000 From: "Darlene Wardlaw" Subject: Fixed Assets They purchased quite a bit of computer equipment in the last couple of years. When you audit PP\&E, let "the Crumpler" do most of the legwork (vouching invoices, examining cancelled checks, examining titles, etc.) for you. Given all of the recent additions, make sure that the depreciation amounts have been calculated and are recorded correctly. Fixed Asset Detail Listing 12/31/17 Depreciation Expense \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{\begin{tabular}{c} Fixed Asset \\ Tag \end{tabular}} & \multirow[b]{2}{*}{\begin{tabular}{l} Acquisition \\ Date \end{tabular}} & \multirow[b]{2}{*}{ Description } & \multirow[b]{2}{*}{ Cost } & \multirow[b]{2}{*}{\begin{tabular}{l} Estimated \\ Useful Life \end{tabular}} & \multirow[b]{2}{*}{2014} & \multicolumn{2}{|c|}{ Depreciation Expense } & \multirow[b]{2}{*}{2017} & \multirow[b]{2}{*}{ Accumulated Depreciation } \\ \hline & & & & & & 2015 & 2016 & & \\ \hline PC0015 & 2/1/46 & Smart Crip 5 Ghe PC & $5,270.93 & 3 & & & $1,613.31 & $1,759.98 & $3,373.2 \\ \hline PCo016 & 2/4/16 & Smart Chip 5 Chiz PC & $5,279.93 & 3 & & & $1,613.31 & $1,750.90 & 53,373.2 \\ \hline PC0017 & 2/1/16 & Smart Chip 5 Grz PC & $5,279.93 & 3 & & & $1,613,31 & $1,78988 & $3,3732 \\ \hline \multirow[t]{2}{*}{ PCO018 } & 2/1/16 & \begin{tabular}{l} Semart CNip 5 Che PC \\ Repair/Repaint original \end{tabular} & $5,27093 & 3 & & & $1,613.31 & $1,759.98 & $3.3732 \\ \hline & 4/14/17 & \begin{tabular}{l} bulding \\ buling \end{tabular} & $50,400.00 & 30 & & & & $1,260.20 & $1,260.2 \\ \hline E00001 & 7017 & New computing system & $1,200,519,90 & 5 & & & & $120,051.99 & 5120,0519 \\ \hline \multirow[t]{2}{*}{ M0001 } & 1/5/17 & Machinery & $1.295,359.98 & 5 & & & & $185.051.43 & 5185.051,4 \\ \hline & & & $3,720,411,06 & & $4,500,00 & $26.000.00 & $133,000.00 & $446,000.00 & $609,500.0 \\ \hline \end{tabular} Date: 3 FEB 2018 12:35:15 +0000 From: "Timothy Crumpler" Subject: PP\&E So here is what I determined about property, plant and equipment: According to Sam Shaw, the fixed asset coordinator, Apollo Shoes moved into new quarters and acquired new equipment in February 2016. Up to that time, Apollo purchased only a fleet of vehicles for key executives and rented everything else. (All of their salesmen rent cars on an as needed basis for visiting clients.) Since the move, there have been only three major capital additions: - Apollo repaired damage to the new building from a hurricane in April. Also, the building was repainted at the same time. I examined an invoice from ZZZ Best Building Repair Company for $50,408.00 as well as the cancelled check. - The company purchased and installed new machinery to make shoes themselves. Apparently, they have been buying all the shoes pre-made from an overseas company. The machinery was installed in January 2017, but hasn't yet been operated. They had hoped to start production in January 2018, although the machinery has not been operated yet. I examined an invoice for $1,295,359.98 as well as the cancelled check. - Apollo purchased and installed a new computer system in July 2017. I examined three invoices and related cancelled checks for $1,200,519.90. One was to Smart Chip for $1,000,000. One was to FastMove for moving services for $519.90. The third was to Professor Josephine Mandeville for $200,000 for "system analysis consulting." - I scanned the invoices in the Repairs and Maintenance account. Repairs and small capital additions (
