Audit of Property, Plant and Equipmen t(PPE) Case 4 ABC Berhad is a small medium sized company which is a talent recruitment agency. The directors of the company have a strong control environment in the company and has an effective internal control. The company has a policy of provided its executives with a company car. Only new cars will be purchased and will be replaced within 5 years. Employees are allowed to purchase replaced cars and submit bids to the company. Outside bidders are also invited to submit their bids. Required: a. Explain the purpose of a PPE register, describe its contents and state how it should be used by an entity b. List three assertions of PPE and describe three substantive procedures that you would perform when auditing PPE. c. State three objectives of the internal controls that should be exercised over PPE Explain why a strong internal control is important for disposal of replaced cars e. Suggest three internal controls that ABC should use over disposal of replaced cars d.
