Hi im struggling with my auditing home works. I need to identify (1) 6 or more inherent risk for the completeness assertion of COGS (2) control risk for the completeness assertion of COGS (3) Perform one analytical procedure to assess the likelihood of misstatements for the completeness assertion of COGS. Briefly analyze your findings. (1 mark) (4) Suggest one test of control to test the completeness assertion of COGS for this audit client. The test should be based on the facts given in the case study. Briefly explain how this test of control specifically tests the completeness assertion of COGS. (1 mark) (5) Explain one substantive procedure that produces reasonably reliable evidence to test the completeness assertion of COGS for this audit client. Do NOT suggest analytical procedures. Do NOT use the same procedure here as the test of control in part (4). (1 mark)

2015-1 Auditing Assignment, p.1 2015 Semester 1 ACCT3101 Auditing Assignment (10 marks) You are a senior auditor of the accounting firm Y&Z Partners. Your audit team is currently planning the 2015 audit of OfficeHelp Limited, a medium sized business which imports and sells office furniture. This is the third year your accounting firm is engaged to perform the audit for this client. The financial year being audited ends on 30 June 2015. Past audit work and initial audit procedures performed this year reveal the following information: OfficeHelp Limited's profit has grown at an average rate of 8% in the past 3 years. The board of directors is satisfied with the company's profit and share price performance, and rewards the Chief Executive Officer (CEO) with an annual bonus of the company's shares when profit growth exceeds 7% for a particular year. The CEO is keen to maintain the good performance, so the CEO plans to open 15 new stores in the next two years. To raise the money required for the expansion plan, the company borrowed $7 million in February 2015 from a local bank. One of the conditions in the debt contract requires the audit client's interest coverage ratio (calculated as net profit divided by interest expense) to be above 12. The company's interest coverage ratio is 9.4 on 31 March 2015 based on its net profit for the first 9 months of the financial year. The ratio has increased to 12.1 on 30 June 2015 based on unaudited financial results. The bank loan is not sufficient to cover all costs for the expansion plan, so the company is also planning to make a major public share issue in September 2015. To obtain the best share price possible, it is important for the company to show a strong and healthy financial report. The CEO e-mailed all employees in March 2015 to encourage all staff to help increase revenues and cut costs. A special bonus will be paid to all staff if the company's profit growth reaches 9% for the financial year under audit. Inflation and a weak Australian dollar during the financial year resulted in higher operating costs including inventory purchase costs. The company is considering raising its products' selling prices but has not done so yet due to concerns about losing market share to competitors. The table below shows the historical trend of sales and cost of goods sold (COGS) for the past four years. Note that the 2015 numbers are not yet audited. Sales growth COGS/Sales 2015 9% 0.41 2014 8% 0.49 2013 10% 0.45 2012 7% 0.4 2015-1 Auditing Assignment, p.2 The audit client uses a perpetual inventory system. The accounting department is separate from other operating departments. Only the accounting staff have access to the accounting system. Even the CEO does not have direct access to the accounting records. The CEO needs to consult with the chief accountant about any proposed changes. If the chief accountant agrees that an adjustment is appropriate, the chief accountant would then make the change in the computer system. The accounting staff check all related documents before recording journal entries in the computer system. When accounting staff record a sale, the accounting system shows a message which reminds the staff to record the corresponding journal entry for cost of goods sold. However, the sales transaction can still be processed by the system without a corresponding COGS entry. The accounting system is integrated with the inventory information system so the accounting staff can easily look up inventory records to find the correct unit price for the inventory items sold. A senior supervisor or the chief accountant's authorisation (i.e., password) is required to adjust or delete past journal entries. The accounting department's policies require senior accounting staff to sample check junior staff's work every week, but during busy times senior staff often cannot spare the time to do so. The chief accountant was hired by the CEO about 4 years ago and you know they are close friends. The chief accountant keeps the CEO updated about the company's financial progress and discusses major accounting issues with the CEO. However, they both say that the CEO does not attempt to override the chief accountant's professional judgment. Required For the completeness assertion of the cost of goods sold (COGS) account, answer all of the following questions in accordance with the Australian Auditing Standards. You need to perform your analysis using the facts in the case study. (1) Assess inherent risk for the completeness assertion of COGS. (4 marks) (2) Assess control risk for the completeness assertion of COGS. (3 marks) (3) Perform one analytical procedure to assess the likelihood of misstatements for the completeness assertion of COGS. Briefly analyze your findings. (1 mark) (4) Suggest one test of control to test the completeness assertion of COGS for this audit client. The test should be based on the facts given in the case study. Briefly explain how this test of control specifically tests the completeness assertion of COGS. (1 mark) (5) Explain one substantive procedure that produces reasonably reliable evidence to test the completeness assertion of COGS for this audit client. Do NOT suggest analytical procedures. Do NOT use the same procedure here as the test of control in part (4). (1 mark)