Case 1

Geline Hardware Wholesalers sells hardware and small appliances to selected retailers throughout the Philippines. Terms are 2/10 , n / 30 In addition to customer accounts, Geline's accounts receivable includes employee receivables, customer credit balances, and other non-trade receivables, such as returnable container deposits, utility deposits, and amounts receivable from sale of assets other than inventory. These other amounts are considered material, but no effort is made to identify them separately for either interim or annual financial statement purposes. Answer the following:

1. Identify any internal control weakness present in the company. 2. Which audit assertions are affected in the situation presented? 3. List down possible substantive tests to verify the accounts receivable of Merelco.

Case 2

Stone, CPA, is auditing the financial statements of Rock Corporation for the year ended December 31, 2015. Stone plans to complete the field work and sign the auditor's report about April 12, 2016. Stone is concerned about events and transactions occurring after December 31, 2015, that may affect the 2015 financial statements of Rock Corporation. Answer the following:

1. Describe the types of subsequent events that require Chloe's consideration and evaluation. 2. What audit procedures should be performed by Chloe to gather evidence regarding subsequent events?