(c) (i) Audit procedures on amounts capitalised Generally 1 mark per specific audit procedure Ideas list: – Agree sample of costs to invoice/tender documents – Review capex budget and discuss variances actual v budget – Agree interest rate of finance cost to terms of finance – Agree period of capitalisation correct by reference to date of completion of restaurants – Review list of items capitalised to ensure all capital in nature Maximum marks 5 (ii) Audit work for advertising expense Generally 1 mark per specific audit procedure Ideas list: – Agree sample of costs to invoices/reports from consultants – Analytical review – Discuss with relevant personnel/review of business plan – Inspect budgets – Physically inspect the advertising – After-date invoice review – Assess date advertising conducted Maximum marks 4 –––
