Pineapple Beach Hotel Co. (Pineapple) operates a hotel providing accommodation, leisure facilities, and restaurants. Its year end was April 30, 2016. You are the audit senior of Berry & Co. and are currently preparing the audit program for the year-end audit of Pineapple. You are reviewing the notes of last weeks meeting between the audit manager and controller where the following material issue was discussed.

Pineapple incurred significant capital expenditure during the year on updating the leisure facilities for the hotel. The controller has proposed that the new leisure equipment be depreciated over 10 years using the straight-line method.

Describe substantive procedures to obtain sufficient and appropriate audit evidence in relation to the above issue. (12 Marks)

(Question is 12 marks. Please give detail responses to the question. No short answers will be accepted. Need long answers since its 12 marks)