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auditing and assurance questions, please provide most definite answers. 4) You are the audit senior responsible for the audit of a company. You are currently
auditing and assurance questions, please provide most definite answers.
4) You are the audit senior responsible for the audit of a company. You are currently planning the audit for the year and during your initial meeting with the financial controller, he told you of the following changes in the company's operations. i) Due to the financial controller workload, the company has employed a treasurer. The financial controller is excited about the appointment because in the two months, the treasurer has been with the company through foreign exchange transactions in Japanese Yen. ii) To help achieve budgeted sales for the year, company is about to introduce bonuses for sales staff. The bonuses will be an increasing percentage of the gross sales made by each salesman above certain monthly targets. iii) The managing director has just returned from USA, where he signed a contract to import a line of clothing that has become the latest fashion there. The company has not been previously engaged in the clothing industry. List the components of audit that has been affected in each scenario. 4) You are the audit senior responsible for the audit of a company. You are currently planning the audit for the year and during your initial meeting with the financial controller, he told you of the following changes in the company's operations. i) Due to the financial controller workload, the company has employed a treasurer. The financial controller is excited about the appointment because in the two months, the treasurer has been with the company through foreign exchange transactions in Japanese Yen. ii) To help achieve budgeted sales for the year, company is about to introduce bonuses for sales staff. The bonuses will be an increasing percentage of the gross sales made by each salesman above certain monthly targets. iii) The managing director has just returned from USA, where he signed a contract to import a line of clothing that has become the latest fashion there. The company has not been previously engaged in the clothing industry. List the components of audit that has been affected in each scenario Step by Step Solution
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