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Capital assets — Obtain rollforwards of capital asset activity. Agree beginning <br /> balances to prior year audited amounts and ending balances to <br /> general ledger control accounts. <br /> - Obtain a detailed listing of additions and agree to the <br /> rollforward. Test individually significant items by tracing to <br /> approved invoices. <br /> — Compare capital outlay expenditures to capital asset additions <br /> for reasonableness. If considered necessary, perform a search <br /> for unrecorded capital assets to audit completeness. <br /> — Agree approved capital items from board minutes to additions <br /> listing. <br /> — Obtain a detailed listing of disposals and agree to the <br /> rollforward.Determine whether any proceeds on the sale of <br /> such assets has been reported appropriately in the financial <br /> statements. <br /> — Obtain depreciation schedules and test the accuracy of <br /> calculation based on the selected depreciation method and <br /> useful life. )� <br /> — Test the accounting for and disclosure of amounts acquired <br /> through capital leases or installment purchase agreements. <br /> - Test the allocation of depreciation expense by function. <br /> — Inquire about timing of physical inventory observations,the <br /> existence of idle assets,and whether remaining useful lives are <br /> still appropriate. <br /> - Inquire about the existence of intangible assets such as usage <br /> or access rights. <br /> — Consider whether amounts remain on construction contracts <br /> related to construction in progress for disclosure in the notes to <br /> the financial statements. <br /> Payables Obtain a detailed listing of the composition of general ledger <br /> control accounts and compare to year-end account balances. <br /> Perform a completeness test by selecting certain subsequent <br /> disbursements,reviewing the invoice for information on the <br /> accounting period involved,and determining whether the <br /> amount is properly included or excluded from year-end <br /> accounts payable. <br /> — Trace fiduciary liabilities to subsequent disbursements or <br /> detailed subledgers of amounts held by individual/entity. <br /> — Determine whether any amounts are being held in agency <br /> funds that represent funds of the primary government which <br /> should be accounted for in the respective funds. <br /> 71 <br />