MARKRICH SPORTSWORLD, INC.

F1
AUDIT PROGRAM CH
PROPERTY, PLANT & EQUIPMENT 31-12-X2

By Ref. Remarks

1. Review and evaluate internal controls for property, plant, and CH F2

equipment.
2. Obtain or prepare analyses of asset groups and accumulated CH F3-5
depreciation presenting beginning and ending balances, additions,
and disposals.
3. Trace beginning balances to prior workpapers. CH F
4. Examine supporting documents for major acquisitions and inspect CH F6-11
selected assets.
5. Examine supporting documents for disposals or retirements. CH F9-11
6. Prepare analysis of repair and maintenance expenses and review CH
documentation to identify possible capital assets.
7. Test depreciation calculations and trace to expense accouts. CH F3-5
8. Ascertain agreement between control account and subsidiary CH F3-5
ledger.
9. Review gains or losses on disposals and trace to appropriate CH F
account.
10. Review adequacy of insurance coverage for plant, property, and CH F3-5
equipment.
11. Review property tax expense documents. CH F6-8
12. Ascertain proper financial statement presentation. CH
 MARKRICH SPORTSWORLD, INC. F2
PROPERTY, PLANT & EQUIPMENT CH
31-12-X2

Yes No Remarks

1. Are disposals for capital acquisitions submitted in writing? 

2. Are capital acquisitions made only after authorization by board

of directors or other appropriate personnel?
3. Is there a policy for approval of acquisitions in excess of those  N/A; there
amounts listed in the original capital budget? is no formal
4. Are competitive bids solicited when feasible?  budget.
5. Are purchasing, receiving, and record-keeping for properties

performed by different personnel?
6. Is a subsidiary ledger maintained and periodically reconciled 
with control accounts?
7. Is there a policy for differentiating between expenses and 
capital expenditures?
8. Are properties tagged with identification number? 
9. Is there a systematic, complete physical inventory of properties 
on a schedule basis?
10. Are there adequate physical safeguards such as alaram systems, 
fences, and security personnel?
11. Are appropriate employees bonded? 
12. Is the insurance coverage periodically reviewed? 
13. Are there formal policies for assigning economic lives, salvage

values, and depreciation methodes?
14. Are there formal policies for reporting disposlas of properties ? 
15. Is written authority required before properties are physically 
removed?