I have posted questions as well as answers as below, I need your help to explain more on each answers so I could gain more understanding. Thanks!
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.
Cloud 9 - Continuing Case 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 Balance January 31, 2022 Acquisitions Disposals 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 Depreciation Ending January 31, 2022 Expense Disposals 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. Occurrence of disposals of property, plant, and equipment. a. You are auditing the acquisition of property, plant, and equip- 2. Accuracy of disposals of property, plant, and equipment. ment. Explain the audit procedures to audit the following 3. Completeness of disposals of property, plant, and assertions. equipment. 1. Occurrence of acquisitions of property, plant, and equipment. c. How does auditing the disposals of property, plant, and 2. Accuracy of acquisitions of property, plant, and equipment. equipment provide evidence related to depreciation expense? 3. Completeness of acquisitions of property, plant, and d. You select the following sample of acquisitions of property, equipment. plant, and equipment. What can you conclude about the acquisitions of property. plant, and equipment from this b. You are auditing the disposals of property, plant, and equip- evidence? Tolerable misstatement for property, plant, and ment. Explain the audit procedures to audit the following equipment is $1 million. assertions. Book Value Size of Size of Book Value Audited Value Stratum of Population Stratum Sample of Sample of Sample > $750,000 $2,678,016 $2,678,016 $3,143,213 2. $250,000 - $750,000 2,343,151 1,231,576 1,231,576
