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You are an audit engagement partner in a local office of a large accountancy firm ABC LLP. ABC LLP has large and medium sized companies

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You are an audit engagement partner in a local office of a large accountancy firm ABC LLP. ABC LLP has large and medium sized companies as clients. Some clients are in the field of construction and some are in the field of software field. The construction companies have big plant and machinery and huge inventories for their construction purposes. Some of them are functioning in their own buildings and some are in rented buildings. Software companies have copy rights over various types of software. Until last year most of the clients were making profits but the economic downturn has started to hit the company hard. As a going concern, valuation of fixed asset, floating assets and liabilities are necessary to check the value, ownership, title of assets and the liabilities of the company. You as an audit partner of the ABC LLP have come across so many situations while auditing client's assets and liabilities for the year ended, December 31, 2019. You are requested to go through the following situations that you have confronted with and prepare an audit statement about how you value and verify each and every asset/liability given those situations. Qn-1 SS LLP a contracting company while valuing its finished stock at the year-end wants to include interest on bank overdraft as an element of cost for the reason that overdraft has been taken specifically for the purpose of financing current asset like inventory and for meeting day to day working expenses of the company. Qn-2 Al-Mubarak a Contracting company have purchased so many raw materials and electrical and plumbing goods from suppliers on credit during the year for the works. Qn-3 The clients Abdullah and Rashid are contractors for civil works and some of their contracts are in the course of completion. Qn-4 Rooby Infro, a software firm have various intangible assets such as patents for various software

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