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Audit Readiness (4) – Property, Plant and Equipment A combination of controls testing and substantive testing is usually adopted when obtaining audit assurance on PPE. The subject matter for discussion on audit readiness this week is Property, Plant and Equipment (PPE).
COST ESTIMATION Cost Indexes Present Cost=(original cost at time t)* • Marshall and Swift. 1. All industryequipment index. Arithmetic average of 47 equipment types. 2. Processindustry equipment index. Weighted average of 8 of these: cement 2% paint 5% chemicals 48% paper 10% clay products 2% petroleum 22% glass 3% rubber 8% MS was 100 in 1926.
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