B). Assume the audit partner has concluded that the company is likely to remain a going concern. Describe the substantive procedures to be performed to address the key audit assertions for the following balances:

i) Trade debtors

ii) PC inventory

iii) Returns provision

iv) Operating revenue

v) Amounts owing to parent entity

C). Assume you were given the following information:

The parent company has advised local management that should Computek not show a turnaround to profits for the year ended 31 December 1999 it will proceed to wind up local operations early in 2000.

What effect would this information have on the audit?

D) Indicate the type of error that each of the following audit procedures is designed to or is likely to disclose:

i) review of the repairs and maintenance account.

ii) confirmation of a portion of accounts receivable.

iii) reconciliation of interest expense with loans payable.

E) Having just completed the annual financial audit, the audit partner and supervisor are holding a final

debriefing meeting with the client. As part of this meeting the managing director of Computek Electronics Ltd indicates: Im glad we got a clean bill of health on that audit report. I had some concerns about controls at the warehouse but I see there is nothing to worry about.

The audit partner replied: our procedures did not involve a full review of controls, so I dont know whether your specific concerns would be addressed or not.

The managing director retorted, Well, what are we paying you for then?

Advise the partner on an appropriate reply to the managing director.