Required Information ELM has three buildings, all on one property. First, they own a manufacturing plant, where all the backpacks are manufactured and product repairs are made. All raw materials are also stored at the manufacturing plant. Second, they own a warehouse where all finished goods are stored and products are shipped to customers. Finally, they own a small office building where they conduct their operations, including processing of orders, purchases, as well as all managerial activities. The company also provides company cars to several employees and has the expected manufacturing equipment, furniture and fixtures. Some of the relevant information related to property, plant and equipment for ELM IS below. Asset Class Number Salvage Value 2 JUUN class of Property Land Buildings Automobiles Manufacturing Equipment Furniture and Fixtures Computer Hardware Computer Software Depreciable Life N/A 39 Years 5 Years 10 Years 7 Years 5 Years 3 Years Various Various None None None None ELM uses the straight line method of depreciation for all property, plant and equipment.ELM calculates depreciation as if the asset was purchased on the 1st day of the month it was purchased in. ELM has a 3/31 year end. For example, an asset purchased in May, 2018 would have 11 months of depreciation in fiscal 2019 (ending March 31, 2019) and 12 months of depreciation for fiscal 2020. In the final year of useful life, one month of depreciation would be recognized. ELM assigns each asset purchased a unique ASSETNO for tracking purposes. The number is assigned as Asset Class Number, followed by the sequential item number for that asset class. For example, the first building would be ASSETNO 2001. The 999th furniture and fixture purchased by ELM would be 5999 and the 1000th would be 51000. ELM does not remove assets from the register, but it does note them as retired once they are no longer in service. Column Maso ASETNO PURCHDATE COST ACCES UCILITE SALVAL Coluna description Unique est net Bato saat was purchased and placed into service Original coat of annet Accumulated Depreciation Useful life of the set In years Salvage Value Asset Location, l-Management offices, Warehouse, J-Pactory Brief description of Art Date Product was retired from service. Blank it still in service FLY Character Date DD/MM/YYYY Bumerie Numeric Numerie Mameric (dollara) Numeric Character Date DD/M/YYYY Data DO/M/YYYY 142:39 LOCATION PROCDESC PETRONA CHGATE Last date any information in the row was changed other than oualated Depreciation Print The client has also provided you with a spreadsheet extracted from their general ledger Depreciation Expense 2020 spreadsheet. Column Coluto description ABS Unique aber DRPRIX Depreciation expense recognised during the current year. ld type Charbeter mario Trees You have been assigned to audit ELM Manufacturing Company's Property and Equipment and depreciation expense for the local year end March 31, 2020 ELM has provided you with the following account reconciliation for Accrued Warranty Liability Total Property, plant and Equipment $126,094,380.00 Accumulated Depreciation $28,481,60782 Total Depreciation Expense $4,100,000.72 Performance Materiality for the Property and Equipment cycle has been set at $1,000,000 *Agreed to 3/3120 unaudited General Ledger Reperform the company's calculation of depreciation expense for the current year using the Information in the fixed asset register. a. What is the total amount of depreciation expense calculated in your reperformance? Total amount of depreciation expense 12:20 Book 6-1. Are there any assets that should have had depreciation expense during the current year that are not included in the client's depreciation schedule? Print Yes ferences No b-2. How many assets that should have had depreciation expense during the current year that are not included in the client's depreciation schedule? Number of assets Print c1. Do you believe that you have sufficient appropriate evidence to conclude that depreciation expense and fixed assets are fairly stated in all material respects? eferences Yes No c2. What are the next steps you would take in performing your tests of fixed assets and depreciation expense? Required Information ELM has three buildings, all on one property. First, they own a manufacturing plant, where all the backpacks are manufactured and product repairs are made. All raw materials are also stored at the manufacturing plant. Second, they own a warehouse where all finished goods are stored and products are shipped to customers. Finally, they own a small office building where they conduct their operations, including processing of orders, purchases, as well as all managerial activities. The company also provides company cars to several employees and has the expected manufacturing equipment, furniture and fixtures. Some of the relevant information related to property, plant and equipment for ELM IS below. Asset Class Number Salvage Value 2 JUUN class of Property Land Buildings Automobiles Manufacturing Equipment Furniture and Fixtures Computer Hardware Computer Software Depreciable Life N/A 39 Years 5 Years 10 Years 7 Years 5 Years 3 Years Various Various None None None None ELM uses the straight line method of depreciation for all property, plant and equipment.ELM calculates depreciation as if the asset was purchased on the 1st day of the month it was purchased in. ELM has a 3/31 year end. For example, an asset purchased in May, 2018 would have 11 months of depreciation in fiscal 2019 (ending March 31, 2019) and 12 months of depreciation for fiscal 2020. In the final year of useful life, one month of depreciation would be recognized. ELM assigns each asset purchased a unique ASSETNO for tracking purposes. The number is assigned as Asset Class Number, followed by the sequential item number for that asset class. For example, the first building would be ASSETNO 2001. The 999th furniture and fixture purchased by ELM would be 5999 and the 1000th would be 51000. ELM does not remove assets from the register, but it does note them as retired once they are no longer in service. Column Maso ASETNO PURCHDATE COST ACCES UCILITE SALVAL Coluna description Unique est net Bato saat was purchased and placed into service Original coat of annet Accumulated Depreciation Useful life of the set In years Salvage Value Asset Location, l-Management offices, Warehouse, J-Pactory Brief description of Art Date Product was retired from service. Blank it still in service FLY Character Date DD/MM/YYYY Bumerie Numeric Numerie Mameric (dollara) Numeric Character Date DD/M/YYYY Data DO/M/YYYY 142:39 LOCATION PROCDESC PETRONA CHGATE Last date any information in the row was changed other than oualated Depreciation Print The client has also provided you with a spreadsheet extracted from their general ledger Depreciation Expense 2020 spreadsheet. Column Coluto description ABS Unique aber DRPRIX Depreciation expense recognised during the current year. ld type Charbeter mario Trees You have been assigned to audit ELM Manufacturing Company's Property and Equipment and depreciation expense for the local year end March 31, 2020 ELM has provided you with the following account reconciliation for Accrued Warranty Liability Total Property, plant and Equipment $126,094,380.00 Accumulated Depreciation $28,481,60782 Total Depreciation Expense $4,100,000.72 Performance Materiality for the Property and Equipment cycle has been set at $1,000,000 *Agreed to 3/3120 unaudited General Ledger Reperform the company's calculation of depreciation expense for the current year using the Information in the fixed asset register. a. What is the total amount of depreciation expense calculated in your reperformance? Total amount of depreciation expense 12:20 Book 6-1. Are there any assets that should have had depreciation expense during the current year that are not included in the client's depreciation schedule? Print Yes ferences No b-2. How many assets that should have had depreciation expense during the current year that are not included in the client's depreciation schedule? Number of assets Print c1. Do you believe that you have sufficient appropriate evidence to conclude that depreciation expense and fixed assets are fairly stated in all material respects? eferences Yes No c2. What are the next steps you would take in performing your tests of fixed assets and depreciation expense