Mrs Beeton’s Kitchens Ltd (MBK) specializes in the design and installation of fitted kitchens. Fitting consultants visit a customer’s home, measure the kitchen and quote a price based on the type of units and electrical appliances selected by the customer. MBK buys in the appliances — cookers, refrigerators, dishwashers, etc. — from the manufacturers, and also buys fittings such as sinks and taps. It makes the kitchen units, counters and shelves in its own workshop. A kitchen can cost from £3,000 to £10,000, depending on the type and number of units and appliances installed. Customers are required to pay a 20 per cent deposit when they place their order, and the balance is payable when the work is completed. It is July 19X9 and MBK’s auditors are currently carrying out the audit for the year ending 30 June 19X9.............

QUESTIONS FOR DISCUSSION
1. Test 2 above is incomplete. Suggest what conclusions the auditor might have drawn from it.
2. What final audit tests might be performed to test whether the following are completely and correctly stated:

(a) purchase ledger balance;

(b) bank overdraft;

(c) bank loan;

(d) goods received not invoiced?