Subject Auditing

please answer carefully

Thank you

Your firm is the auditor of Daybrook Insurance Brokers Ltd., which operates from a number of branches and provides insurance for the general public and businesses. The company obtains insurance from large insurance companies and takes a commission for its services. You have been asked to audit certain aspects of the company's property, plant, and equipment for the year ended December 31. 2020 The company's main property, plant, and equipment include: freehold land and buildings computers, printers, and related equipment, which are used by staff cars, which are provided to directors and salespeople who visit customers The company has been operating for a number of years, and it maintains details of its office equipment and cars on a computerized fixed asset master hie. The company uses the following depreciation rates: buildings (5 percent of cost per year) office equipment (including computers) (10 percent of cost per year) cars (25 percent of cost per year) You are concerned that the depreciation rate for the computers may be inadequate (a) How could the auditors verify the ownership of the freehold land and buildings, computers, and cars? Physically examine the land and buildings, Vouch additions to these accounts to supporting documentation Check the title deeds and mortgage payment receipts. Examine the registration certificates and insurance policies. Review public records S, The company has been operating for fixed asset master file. The company uses the following depreciation rates: buildings (5 percent of cost per year) office equipment (including computers) (10 percent of cost per year) cars (25 percent of cost per year) You are concerned that the depreciation rate for the computers may be inadequate. (a) How could the auditors verify the ownership of the treehold land and buildings, computers, and cars? Physically examine the land and buildings Vouch additions to these accounts to supporting documentation Check the title deeds and mortgage payment receipts. Examine the registration certificates and insurance policies. Review public records Agree details of computer purchases to 'pald'Invoices, Obtain an independent valuation of the capital asets Which of the following procedures test the accuracy and valuation assertion for property, plant, and equipment? A Scan repairs and maintenance expenses for items that should have been capitalized. B. Tour the hotel and note any equipment not in use. C. Recalculate the depreciation expense. D. Read lease agreements and ensure adequate disclosure. E. Recalculate any gain or loss on disposal. Review insurance documents for equipment purchases. G. Obtain a valuation report for land to be reported at fair value