The cost of these assets should be verified by reference to the invoices of suppliers. All the expenditure incidental to their purchase also should be debited to the appropriate asset account. Further, the auditor should carefully scrutinise the details of the cost of additions debited to these accounts so as to ascertain that only the cost of genuine additions has been debited to such accounts. In the case of assets in regard to which there is a danger of loss through pilferage, there should be a satisfactory system of stock control over them. It requires that each article of furniture is entered in a Stock Register before its price is paid and the stock number under which it is entered is painted over it also that at the end of each period, an inventory is prepared and reconciled with the Stock Register and cost of all the articles which becomes unserviceable or have been lost is written off under proper authority.
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