Reference no: EM132781154

Problem 1: You have been asked by your Audit Manager to plan the auditing of the major equipment for a medium sized manufacturing entity. The equipment includes manufacturing equipment which is large and unique in nature (it has been modified to meet the specific needs of the entity being audited and cannot be sold to another entity), a useful life of 30 years and is unlikely to become technically obsolete for the foreseeable future. Using your understanding of what you have learnt in relation to planning an audit, briefly outline how you would plan to "audit the equipment". (Hint: Think about the "tools" provided to the auditor to use to develop their audit strategy in determining what to audit.)