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Your firm is the auditor of SunRamp Insurance Brokers Ltd, which operates from a number of branches and provides insurance for the general public and businesses. The company obtains insurance from large insurance companies and takes a commission for its services.
You have been asked to audit certain aspects of the company's property, plant and equipment for the year ended 30 June 2020.
The company's main property, plant and equipment include:
The company has been operating for a number of years, and it maintains details of its office equipment and cars on a computerised non-current asset register. The company uses the following depreciation rates:
REQUIRED:
Question 1: Describe the audit procedures that you would undertake to verify the ownership, existence and valuation of the land and buildings.
In the present highly competitive environment, why has cost management risen to such a high level of concern whereas price management has declined in importance?
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