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When Conducting Tests of Details of Transactions for Property, Plant

question 36

Essay

When conducting tests of details of transactions for property, plant, and equipment, there are three types of transactions that need to be substantiated. These transactions are additions, disposals and repairs and maintenance. Briefly describe what is involved with substantiating each of these types of transactions.


Definitions:

Mecca

A city in Saudi Arabia that is the holiest city in Islam; it is the birthplace of the Prophet Muhammad and the site of the Kaaba, towards which Muslims face when praying.

Oriented

Positioning or aligning something relative to the points of a compass or other specified directions.

Kaaba

Arabic, “cube.” A small cubical building in Mecca, the symbolic center of the Islamic world.

Muhammad

The founder of Islam, regarded by Muslims as the last messenger and prophet sent by God to guide humanity.

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