You have recently been promoted from Assistant Audit Manager to Audit Manager in December 2021. As Audit Manager, you are currently busy with the audit of Thandi Ventures (Thandi) for the year ended 30 June 2022 and have been on the audit of Thandi for several previous years. Thandi was listed on the Johannesburg Stock Exchanges (JSE) mainboard in 2015. The nature of Thandis activities demands a material investment in fixed assets. Thandi specialises in constructing roads, bridges, and buildings. In the current 2022 financial year, Thandi started with a new venture which entails the construction of fuel storage facilities. The Financial Manager informed you that Thandi is growing exceptionally well, and the sales are at an all-time high. He also mentioned that all top-level management received bonuses based on profit for the year.

Note 1.2 Disposal of machine Included in the property, plant, and equipment is the disposal of a machine during November 2021 as the machine was close to the end of its useful life and started to deteriorate. The only PPE disposal during the year was that of the machine. The useful life of this machine was 5 years. The sale of this machine was a significant disposal for Thandi and was therefore approved at a board meeting. The Board decided to sell the machine for less than its carrying value and then made a loss on the disposal of the machine amounting to R84 500.

Formulate the substantive procedures that you would perform in respect of the Note 1.2: Disposal of the machine.