You have been asked to carry out the audit of the property plant and equipment of Simons Engineering Limited for the year ended 31 March. The draft accounts show the following movements on noncurrent assets in the year

	Freehold Land & Buildings	Plant & Machinery	Motor Vehicles	TOTAL
Cost or Valuation	GHC	GHC	GHC	GHC
At 1st April	353,000	406,000	173,000	932,000
Additions	292,000	86,000	65,000	443,000
Disposals	-	(29,000)	(47,000)	(76,000)
At 31st March	645,000	463,000	191,000	1,299,000

	Freehold Land & Buildings	Plant & Machinery	Motor Vehicles	TOTAL
Depreciation	GHC	GHC	GHC	GHC
At 1st April	132,000	187,000	74,000	393,000
Charge for the year	12,900	43,000	42,000	97,900
On disposals	-	(25,000)	(32,000)	(57,000)
At 31st March	144,900	205,000	84,000	433,900
NBV at 31st March	500,100	258,000	107,000	865,000

During the current year ended 31 March the company purchased some land and built a new factory, which was completed during the year.

The company maintains a PPE register for all information related to property plant and equipment, and it depreciates its fixed assets at the following rates:

• Land and buildings 2% on cost
• Plant and machinery 10% on cost
• Motor vehicles 25% on cost

It is the companys policy to charge a full years depreciation on assets in the year of purchase and no depreciation in the year of sale.

Required;

(a) List and describe the audit tests you would perform to verify the amounts shown in property plant and equipment in the companys accounts for the current year ended 31 March.

(b) If the company did not maintain a PPE register, describe the problems you would experience and how it would affect your audit work and opinion