The client you are working on manufactures a product that requires a very specialized machine. In the current year, they purchase a new specialized machine which you tested during additions testing. The addition appears appropriate. There were no disposals in the current year. What additional inquiries, if any, do you need to perform of the client?
2)At year end, your client put $5,000 down for a new truck. The truck was received subsequent to year end. When should depreciation begin? Should the $5,000 be included in fixed assets at YE? Why or why not? 3) The client you are auditing has several fully depreciated assets. Should you keep those assets on the books or have the client remove them? Assume they are material to the balance sheet.