Highlight the Audit approach for the “Assets Abroad”

Auditing and Assurance Revision Questions and Answers

Answer
The auditor should follow various audit approaches stated as under:

 The auditor should review the internal control to confirm the accountability of each asset has been established maintaining appropriate records and has been accounted and depreciated properly.
 Where documents of title relating to assets held abroad are not available for inspection, a certificate should be obtained from the agent or any other party holding the document. Such a certificate must disclose unequivocally that they are free from any charge or encumbrance.

 The auditor should obtain sufficient evidence to satisfy that the assets are physically verified and exists at the specified location.
 The auditor should obtain third party confirmation for any assets that are in possession of other parties like bank balance, debtors etc.



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