The following information relates to questions 9 and 10. You are the auditor for Moped Pty Ltd (Moped), a property development company. Moped has…

AUDITING&ASSURANCE Multiple Choice:

6. You are the auditor of Muthi Pty Ltd (Muthi). You have noted that during the year, Muthi’s management has implemented a bonus incentive scheme for salesmen based on achievement of individual sales targets. Which of the following account and assertion would be LEAST likely to represent a risk in the audit of Muthi?

a) Sales: Cut‐off.

b) Accounts receivable: Completeness.

c) Sales: Accuracy.

d) Accounts receivable: Existence.

The following information relates to questions 7 and 8. You are the auditor for Pri Ltd (Pri) for the year ended 30 June 2018. In July 2018, one of Pri’s largest customers, Tech Pty Ltd (Tech), went into bankruptcy after the court upheld a large penalty against the company for engaging in misleading conduct. Pri’s accounts receivable includes an amount of $8 million owing from Tech, of which only 10% is now expected to be collectible.  

7. Which of the following actions would you require Pri’s management to undertake?

a) Take no action in 2018 and release 2018 financial report as prepared, recording $7.2 million loss in the 2019 financial report.

b) Report $7.2 million loss in relation to uncollectible debts in the events after balance date note to the 2018 financial report.

c) Record $3.6 million loss in relation to uncollectible debts in each of the 2018 and 2019 financial reports.

d) Adjust the 2018 financial report to record the $7.2 million loss and bring down the amount owing from Tech accordingly.

8. If the amount in question is material and Pri’s management do not take the required course of action you have requested, which of the following audit opinion would be most appropriate for the audit of Pri for the financial year ending 30 June 2018?

a) Unmodified opinion.

b) Unmodified opinion with emphasis of matter paragraph.

c) Qualified opinion.

d) Disclaimer of opinion.

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more