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Assignment Lab 5: Audit of Fixed Asset

This document outlines an audit assignment of fixed assets for a company called PT ATA. It includes definitions of key terms, depreciation methods, characteristics of a fixed asset audit, the business purpose of such an audit, important internal controls, and testing procedures. It also provides a case study where the auditor found incorrect balances and transactions that need adjusting, including a building and land recorded as one asset, and damaged vehicles still on the books. The auditor must investigate and make the proper adjustments.

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Ana Nurfaizah
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43 views1 page

Assignment Lab 5: Audit of Fixed Asset

This document outlines an audit assignment of fixed assets for a company called PT ATA. It includes definitions of key terms, depreciation methods, characteristics of a fixed asset audit, the business purpose of such an audit, important internal controls, and testing procedures. It also provides a case study where the auditor found incorrect balances and transactions that need adjusting, including a building and land recorded as one asset, and damaged vehicles still on the books. The auditor must investigate and make the proper adjustments.

Uploaded by

Ana Nurfaizah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ASSIGNMENT LAB 5 :

AUDIT OF FIXED ASSET

A. Please create a summary with the following key points :


1. Definition of fixed asset (based on PSAK 16)
2. Depreciation method
3. Characteristics of audit of fixed asset
4. Business function of audit of fixed asset (Inc. related accounts and documents)
5. Internal Control
6. Test performed in audit of fixed asset

B. Case
For the first time, PT ATA hired a public accountant to perform audit of its financial
statement in 2015. Jerry as the auditor who responsible to perform the audit found incorrect
balance of fixed asset. In order to investigate, jerry do some inquiry to Mr. Anyo as the chief
accountant of PT ATA. These are the following informations:
 In 2014, PT ATA bought a building worth IDR800 million above a plot of land used as a
garage for its transport vehicle. The building and land are recorded as one account not
separated. Depreciation method used is a straight-line method with an economic life of 20
years. The land itself was worth for IDR200 millions.
 In 2014, a fire broke out and damaged four vehicles owned by PT ATA so that the
vehicles could no longer be used. The vehicles worth for IDR450 millions but still
recorded in the books.

As an auditor, please make adjustment to those incorrect recording of transaction above!

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