Reference no: EM132672778

DriveGo is a taxi company with vehicles in the form of cars and motorbikes. Known: that the company has many assets in these cars and motorbikes.

It was also known at the time of the audit that:

1. Ownership is in the form of direct company name and some is not.
2. Company assets include assets purchased, and assets obtained from leasing.
3. There are few vehicle assets that are not used due to total damage.
4. There are also vehicle assets that do not match the specifications registered with the company.

Problem 1: If you were asked to verify DriveGo assets reported on the financial statements, what evidence would you look for to confirm that they are company assets? How do you know the assets are worth using for the company? How to ensure that the assets match what is stated in the company's asset list?