Question
CASE You are the auditor of KAP XXX & colleagues who are auditing PT. AVAIR INDUSTRI for the financial year ended December 31, 2016. In
CASE You are the auditor of KAP XXX & colleagues who are auditing PT. AVAIR INDUSTRI for the financial year ended December 31, 2016. In the process of completing the audit, you are considering a number of issues that may need to be adjusted to the financial statements, namely: 1. In January 2017 there was a return of goods worth a total of Rp. 3,300,529,000 which came from last year's sales. 2. From the cut-off test results obtained the purchase of raw materials received on 30 December 2016 amounting to Rp. 4,220,357,000 were recorded as purchases in 2017 because the recording process was only carried out at the beginning of January 2017. The items were included in the preparations calculated as at 31 December 2016, and were included as final needs. 3. The cut-off examiners provided also displayed a number of invoices listed in the 2016 sales journal but the goods were only sent in early January 2017. The total shipment of goods was received at Rp. 3,650,022,000. The item is not included in the final preparation at the placement. 4. The results of the analysis of the receivable balances show that some receipts are uncollected so that the allowance for uncollectible allowances (unaudited) is too low around Rp.100,000,000.
The level of materiality specified in the audit plan is Rp.5,000,000,000, or 5% of the net profit before tax obtained Rp. 100,128.6670,000 ,. Specific questions are needed for problems that are indicated to be deemed incompatible with what was requested or agreed upon.
Company management must reduce the amount that cannot be done.
Question: 1. Ask if you will ask for a correction journal regarding each of the above problems. Explain your argument and state it with the correction journal 2. Discuss the impact on the audit report (opinion) if management persists in not wanting to change or make adjustments to its financial statements.
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