Consider the following independent situations:

1. Naish Ltd

You are the senior auditor planning the audit of Nasih Ltd, a retailer of homewares which entered the Australian market in 2020. Naish has a network of retail outlets throughout New South Wales, Victoria and Queensland and imports most of its inventory from Chinese manufacturers. The rollout of Naishs retail outlets has been funded by a twenty-year loan from Naishs parent entity and various short term credit facilities provided by RyanBank Ltd.

As part of the planning process you have discovered that:

Naish, entered the market at the beginning of the COVID19 pandemic, and while coming close to breaking even, has not yet made any profits.

Australia continues to have disrupted trade relations with China, which has impacted supply chains, significantly increasing the cost and availability of inventory purchases.

RyanBank Ltd has requested further detail on Naishs liquidity forecasts for the coming year to support the short-term credit arrangements that are in place.

Required:

Identify the business risks that exist in this situation.

Describe any further evidence that you will need to assess the appropriateness of the going concern assumption.

2.Cool Soil Pastures Ltd

Cool Soil Pastures Ltd is an Australian pastoral company operating in the Riverina region of New South Wales and is looking to enhance the quality of its greenhouse gas emissions disclosures.

Required:

As auditor of Cool Soil Pastures Ltd, outline the:

process that you need to follow to obtain sufficient and appropriate audit evidence relating to GHG emissions.

nature of any specialist assistance which might be required by the audit team to undertake these procedures.

3. Bremen Ltd

Bremen Ltd develops and markets cloud-based accounting software for use by Australian and New Zealand small and medium businesses. Anthony Banik, a systems analyst for Bremen Ltd, has just identified an error in one of the program algorithms used to calculate the amount of pay as you go (PAYG) withholding tax on employee salaries and wages. The result of this problem is that the amount of PAYG withholding owed to the Government by businesses using Bremens software has been understated.

Required:

Identify the internal controls which would have prevented the faulty version of this program being used live on client data.