ABC Limited is a national fertiliser manufacturer with factories in every State of Australia. The company owns freehold property, plant and office equipment in each State, and maintains a large fleet of motor vehicles for sales staff and executives. Until last year, the company had maintained a fixed asset register using spreadsheet software. However, because of the substantial time and cost involved in maintaining the register, the company s IT staff have devised a fully computerised fixed asset system. You are aware that there have been a few problems in implementing the system, and you have decided to use generalized software to audit the file. The fixed asset master file of ABC Limited contains the following fields: Item identification number Date acquired (dd/mm/yyyy) Description Location Transaction code (A = new acquisition; W = write down; I = improvements) Asset class Cost ($) Revalued amount (if applicable) ($) Depreciation method (prime cost, diminishing value) Depreciation rate-book (%) Depreciation rate-tax (%) Expected life of asset (years) Residual value ($) Accumulated depreciation (opening balance)-book ($) Accumulated depreciation (opening balance)-tax ($) Current year depreciation-book ($) Current year depreciation-tax ($) Sales proceeds ($) Sale date (dd/mm/yyyy) REQUIRED a. Suggest four ways in which generalised audit software could be used to assist in the audit of property, plant and equipment for ABC Limited. F
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