Mason has not purchased any new helicopters during the year to 31 December 20X3; however there has been a lot of re-fitting, replacement and adding of specialist equipment to some of the existing aircraft. This has been necessary to keep up with the latest developments in search and rescue, and to maintain the aircraft to the high standard required under the contracts in place. This information has led you to be concerned that property, plant and equipment may be overstated in the financial statements.Which of the following statements represents a valid response to this audit risk?
A.
Perform a proof in total calculation of the depreciation charge for the year and investigate any significant differences
B.
Review minutes of training meetings to determine whether the pilots have been trained how to use the specialist equipment
C.
Obtain a breakdown of the capitalised costs and agree a sample of items to invoices to determine the nature of the expenditure
D.
Discuss with directors how the acquisition of specialist equipment has been financed