Your firm is the auditor of Pinkglow Ltd, a manufacturer. Youhave obtained a summary of the property, plant and equipment forthe year ended 30 June 2018, which identifies cost and accumulateddepreciation brought forward, additions and disposals in the yearand depreciation charges. A review of the management letter fromthe previous year’s audit shows that there were some problems inrelation to making a distinction between capitalisation andexpenses; some items were capitalised when they should have beenexpensed and other capital items were included in repairs andmaintenance in the income statement. Another risk identified fromprior years relates to depreciation calculations; there is a rangeof depreciation rates within categories and there has been aconcern that the rates applied to some assets have been too low.The depreciation policy disclosed in the financial report shows:•

buildings: 2–4% straight-line • plant and machinery: 5–10%straight-line • fixtures fittings and equipment: 5–20% straightline.

Required: Describe audit procedures to ensure: a) the accuracyof the summary of property plant and equipment b) all items ofcapital expenditure are included in additions for the year and thatno expenses have been capitalised c) the depreciation rates arecalculated appropriately. (this is auditing question but i couldnot find auditing in subject list so i choose finannce)