For the purposes of this assignment, you are to imagine that you work as Audit Manager for a company called Amazing Accountants. Your new audit client is a listed company in Australian or Singapore Stock Exchange ( ABACUS REAL ESTATE ). The client has asked you to perform their financial report audit for the financial year ended 31 December 2020.

Part 3 Question

Identify or assume TWO (2) high level/detective internal controls and propose a control test for each control in ANY of the following processes.

• Cash receipt and payment
• Sales and accounts receivables
• Purchase and accounts payables
• Inventory and Cost of goods sold
• Payrolls
• Non-current assets and Depreciation

Part 4 Question

Design FIVE (5) substantive procedures for the transactions and balances discussed in question (3) and justify why you select these substantive procedures for the following scenarios:

1. Your proposed tests of controls in question (3) PASSED.
2. Your proposed tests of controls in question (3) FAILED.