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Given that the Materiality (M) is set at 1364,000,000 and Performance Materiality (PM) is */ -273,000,000, Audit Misstatement Posting Threshold (AMPT) is 18,200,000Finding 2: During
Given that the Materiality (M) is set at 1364,000,000 and Performance Materiality (PM) is */ -273,000,000, Audit Misstatement Posting Threshold (AMPT) is 18,200,000Finding 2: During observation of stockcount as at 31 Dec 2020, the audit team took a sample of raw materials and recorded the result as bellow: Item code Quantity per count |Quantity per book Addition information Paper cup 500 boxes 500 boxes Price of each box: 120,000. Half of them were wet, due to a hole in the roof and the heavy rain last month. Proper supporting documents Bamboo straw 0 boxes 872 boxes Price of each box: 350,000 The inventory is ordered, billed and paid at 29 Dec 2020 but still in transit. Delivery term is FOB. Rice straw 200 boxes 200 boxes Price of each box: VND 400,000 Proper supporting documentsFinding 3: Assume that the client made the following actual credit sales and received cash receipts as follows after 29 December 2020: Sale COGS Cash receipt (Receivable collected) 30 Dec 2020 20,000,000 13,000,000 22,000,000 31 Dec 2020 23,300,000 10,800,000 18,000,0001 Jan 2021 19,800,000 8,500,000 19,500,000 2 Jan 2021 22,000,000 14,900,000 24,500,000 The company closed the cash receipts journal at 29 December and reported the last two days of cash receipts in January of 202 1 The company uses a periodic inventory system.Your audit team went to the client site to perform the final audit fieldwork. Extract of your team members' audit working papers are presented in Appendix B. Identify possible misstatements and discuss further course of actions for you and your audit team
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