The following are examples of errors often detected in the property, plant and equipment accounts.

(i) The estimated useful lives used to depreciate the equipment are much lesser than the reasonable expected useful lives.

(ii) Capitalisable assets are routinely expensed as repairs and maintenance, perishable tools or supplies expenses.

(iii) Construction equipment that is abandoned or traded for replacement equipment is not removed from the accounting records.

(iv) Depreciation expense for manufacturing operations is charged to administrative expenses.

For each error, you are required to:

(a) state two internal controls that the client should implement in order to prevent the fraud or error from recurring

(b) state two substantive procedures that the auditor could use to discover the fraud or error