Audit Procedures for Non-Current Assets (5)

Question 1

Rights and obligations (verify title)

Answer 1

Verify title to land and buildings by inspection of:

Title deeds
Land registry certificates
Leases

Question 2

Rights and obligations (certificate)

Answer 2

Obtain a certificate from solicitors/bankers

Question 3

Rights and obligations (purpose)

Answer 3

Stating purpose for which the deeds are being held

Question 4

Rights and obligations (deeds)

Answer 4

Stating deeds are free from mortgage or lien

Question 5

Rights and obligations (registration documents)

Answer 5

Inspect registration documents for vehicles held, confirming theu are in client’s name

Question 6

Rights and obligations (client’s business)

Answer 6

Confirm all vehicles are used for client’s business

Question 7

Rights and obligations (documents of title)

Answer 7

Examine documents of title for other assets (purchase invoices, architects’ certificates, contracts, hire purchase or lease agreement)

Question 8

Rights and obligations (statutory books)

Answer 8

Review for evidence of charges in statutory books and by company search

Question 9

Rights and obligations (leasehold properties)

Answer 9

Review leases of leasehold properties to ensyre that company has fulfilled covenants therein

Question 10

Rights and obligations (examine invoices)

Answer 10

Examine invoices received after year end, orders and minutes for evidence of capital commitments