Identify the weaknesses in the stock take procedures

Question 1 (12.5 marks) Your firm is the auditor of GreenBrown Ltd, a manufacturer. You have obtained a summary of the property, plant and equipment for the year ended 30 June 2015, which identifies cost and accumulated depreciation brought forward, additions and disposals in the year and depreciation charges. A review of the management letter from the previous year’s audit shows that there were some problems in relation to making a distinction between capital and revenu … Identify the weaknesses in the stocktake procedures above and identify how they could be improved.

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