You are the auditor for Heuristics Ltd, who is in the medical industry. On review of the companys draft financial report for the year ended 31 July 2019, the engagement partner observes that a substantial amount of equipment is shown in the Statement of Financial Position. You are currently evaluating the inherent risk of Heuristics Ltd.

Required

1. (a) You are involved in the audit PPEs this year. Identify and explain six (6) substantive procedures you will carry out on the PPE accounts. Your answer should be in the following format:

Assertions Substantive Procedures

2. (b) Identify and explain five (5) substantive procedures that can be used to audit the impairment of PPEs.