JB HI HI Tax Invoice To: Myer - Sydney 26 Pitt Street Invoice Number: 673985 Sydney Purchase Order Reference: PO: 673985 16 March 2019 Despatch Reference: DO: 673985 Code Description Qty Price per Unit Total Price 48326 38 cm Sony Curved TV 356.00 712.00 36356 32 cm Panasonic TV 310.00 930.00 Total $1,642.00 GST 164.20 Total 1,806.20 Payment due 17 April 2019 JB HI HI Despatch Note To: Myer - Sydney 26 Pitt Street Despatch Note: DN: 673985 Sydney Purchase Order Reference: PO: 673985 14 March 2019 Authorised: YES Code Description Qty 48326 38 cm Sony Curved TV 36356 32 cm Panasonic TV WN Driver: P Phillips I declare that all goods were received and no damage noted. Customer Signature: Phillin Jones 14/3/20192. Assess control risk Based on the tests completed in (1) above would the control risk for the relevant account assertions be assessed as High, Medium or Low. Complete the following table. Account assertion Control risk High/Medium/Low Explanation Sales - Occurrence Please complete Sales - Completeness Please complete Sales - Accuracy Please complete The effects of the sales exception are offset by the successful cash receipts testing. By confirming through testing that the A/R - Existence cash is properly posted to the A/R balance, this provides evidence that the customer balance did exist (i.e. they are paid the balance). A/R - Completeness The reconciliation testing provides comfort that all cash received is posted to the accounts receivable balance. A/R - Valuation Please complete By matching the cash receipt journal (through the A/R batch) to Cash - Existence the bank statement, the existence of the cash balances is confirmed. Cash - Testing shows that cash received in bank is recorded in the Completeness general ledger. Would your assessment of the control risk help prevent or detect a material misstatement? (Word limit - 50 words)JB HI HI Tax Invoice To: Billy Snedden Cafe 29 Weller Place Invoice Number: 668823 Brisbane Purchase Order Reference: PO: 668823 1 March 2019 Despatch Reference: DO: 668823 Code Description Qty Price per Unit Total Price 48326 38 cm Sony Curved TV 356.00 712.00 36356 32 cm Panasonic TV NI 310.00 310.00 Total $1,022.00 GST 102.20 Tota 1,124.20 Payment due 1 April 2019 JB HI HI Despatch Note To: Billy Snedden Cafe 29 Weller Place Despatch Note: DN: 668823 Brisbane Purchase Order Reference: PO: 668823 28 February 2019 Authorised: YES Code Description Qty 48326 38 cm Sony Curved TV 36356 32 cm Panasonic TV Driver: P Phillips I declare that all goods were received and no damage noted. Customer Signature: Daniel Brown 28/2/2019JB HI FI Controls Testing - Sales and Despatch Process 30 June 2019 AIM: To test selected controls over the Sales and Despatch process SAMPLE: We randomly selected 35 sales invoices from the entire year RESULTS: Sales Sale amount Invoice Date Customer name (Excl GST) matches Dispatch Note No Price List Invoice No Dispatch Note (1) Note(2) Note (3 Note (4) 14/07/201 654878 8 Myer - Melbourne 1,265.27 DN0654878 23/07/201 2 655041 8 Sunset Electrics 2,344.24 DN065504 Anytime Fitness - 3 655323 7/08/2018 Sydney 3,489.44 v DN0655323 16/08/201 Anytime Fitness - 4 655547 8 Brisbane 1,637.83 V DN0655547 5 655985 2/09/2018 Myer - Sydney 905.28 v DN0655985 10/09/201 6 656066 8 Billy Snedden Cafe 1,657.97 V DN0656066 v 7 656846 8/10/2018 Sunset Electrics 2,344.24 V DN0656846 27/12/201 8 657134 8 Westfield - Geelong 489.44 DN0657134 9 662811 13/02/201 Westfield - Geelong 1,423.6 DN0662811 For purposes of this case study, sample tests 10-25 have been removed. There were no exceptions noted in the results 26 27 29 30 31 32 33 34 35 Note 1: To complete this test, we agreed that the adds and the cross adds on the invoice were accuate. Note 2: To complete this test, we checked that the Dispatch Note Number matched the Dispatch Note Number on the sales invoice Note 3 To complete this test, we agreed that the Dispatch note was signed by the customer. Note 4: To complete this test, check to see that the unit price on the invoive matches the official price list. CONCLUSION:JB HI HI Tax Invoice To: Anytime Fitness - Brisbane 23 Sussex Street Invoice Number: 669547 Brisbane Purchase Order Reference: PO: 669547 13 March 2019 Despatch Reference: DO: 669547 Code Description Qty Price per Unit Total Price 46843 48 cm Sony TV N N 423.00 346.00 47723 32 cm Sony TV 324.00 648.00 Total $1,494.00 GST 149.40 Total 1,643.40 Payment due 14 April 2019 JB HI HI Despatch Note To: Anytime Fitness - Brisbane 23 Sussex Street Despatch Note: DN: 669547 Brisbane Purchase Order Reference: PO: 669547 11 March 2019 Authorised: YES Code Description Qty 46843 48 cm Sony TV 47723 32 cm Sony TV NN Driver: P Phillips I declare that all goods were received and no damage noted. Customer Signature: 11/3/2019JB HI HI Tax Invoice To: Myer - Sydney 26 Pitt Street Invoice Number: 683878 Sydney Purchase Order Reference: PO: 683878 19 May 2019 Despatch Reference: DO: 683878 Code Description Qty Price per Unit Total Price 46843 48 cm Sony TV 824.00 972.00 48234 40 cm Sony TV 388.00 388.00 Total $1,360.00 GST 136.00 Total 1,496.00 Payment due 19 June 2019 JB HI HI Despatch Note To: Myer - Sydney 26 Pitt Street Despatch Note: DN: 683878 Sydney Purchase Order Reference: PO: 683878 17 May 2019 Authorised: YES Code Description Qty 46843 48 cm Sony TV 48234 40 cm Sony TV Driver: P Phillips I declare that all goods were received and no damage noted. Customer Signature: Phillip Jones 17/5/2019JB HI HI Tax Invoice To: Billy Snedden Cafe 29 Weller Place Invoice Number: 677834 Brisbane Purchase Order Reference: PO: 677834 12 May 2019 Despatch Reference: DO: 677334 Code Description Qty Price per Unit Total Price 46843 48 cm Sony TV 423.00 1,269.00 Total $1,269.00 GST 126.90 Total 1,395.90 Payment due 13 June 2019 JB HI HI Despatch Note To: Billy Snedden Cafe 29 Weller Place Despatch Note: DN: 677834 Brisbane Purchase Order Reference: PO: 677834 10 May 2019 Authorised: YES Code Description Qty 46843 48 cm Sony TV Driver: P Phillips I declare that all goods were received and no damage noted. Customer Signature: Daniel Brown 10/5/2019JB HI HI Tax Invoice To: Anytime Fitness - Brisbane 23 Sussex Street Invoice Number: 679846 Brisbane Purchase Order Reference: PO: 679846 29 April 2019 Despatch Reference: DO: 679846 Code Description Qty Price per Unit Total Price 36356 32 cm Panasonic TV 310.00 930.00 48234 40 cm Sony TV 388.00 1, 164.00 Total $2,094.00 GST 209.40 Total 2,303.40 Payment due 30 May 2019 JB HI HI Despatch Note To: Anytime Fitness - Brisbane 23 Sussex Street Despatch Note: DN: 679846 Brisbane Purchase Order Reference: PO: 679846 26 April 2019 Authorised: YES Code Description Qty 36356 32 cm Panasonic TV 48234 40 cm Sony TV N W/ Driver: P Phillips I declare that all goods were received and no damage noted. Customer Signature: Peter Forwards 26/4/2019JB HI HI Tax Invoice To: Anytime Fitness - Brisbane 23 Sussex Street Invoice Number: 677066 Brisbane Purchase Order Reference: PO: 677066 23 April 2019 Despatch Reference: DO: 677066 Code Description Qty Price per Unit Total Price 48326 38 cm Sony Curved TV 356.00 1,068.00 Total $1,068.00 GST 106.80 Total 1,174.80 Payment due 24 May 2019 JB HI HI Despatch Note To: Anytime Fitness - Brisbane 23 Sussex Street Despatch Note: DN: 677066 Brisbane Purchase Order Reference: PO: 677066 22 April 2019 Authorised: YES Code Description Qty 48326 38 cm Sony Curved TV Driver: P Phillips I declare that all goods were received and no damage noted. Customer Signature: 22/4/2019Required: 1. Based on the preliminary assessment of JB HI FI's control environment obtained in earlier procedures, the audit team has decided to test controls over the despatch and sales process. It is expected that there will be no deficiencies in the transaction level internal controls. Bruce Gibbs has partially completed the testing for selected controls over the sales and despatch process. He has asked your team to complete the testing for him. All information has been provided by the client as shown below. Document your findings on the working paper Bruce has started (see below) and then conclude with your assessment on the overall effectiveness of the controls tested. 2. Using the results of your control testing, assess the control risk for the following assertions (High/Medium/Low) and write an explanation for this assessment and then draw a conclusions whether the current system of internal control could prevent or detect a material misstatement. Use the information from your initial testing to help you make an assessment on the significant assertions. JB HI FI official price list Code Description Unit Price 46843 48 cm Sony TV $423 48234 40 cm Sony TV $388 48326 38 cm Sony TV $356 47723 32 cm Sony TV $324 37885 40 cm Panasonic TV $376 36356 32 cm Panasonic TV $310JB HI HI Tax Invoice To: Sunset Electrics 26 Marine Parade Invoice Number: 689041 Melbourne Purchase Order Reference: PO: 689041 15 June 2019 Despatch Reference: DO: 689041 Code Description Qty Price per Unit Total Price 36356 32 cm Panasonic TV 310.00 930.00 Total $930.00 GST 93.00 Total 1,023.00 Payment due 16 July 2019 JB HI HI Despatch Note To: Sunset Electrics 26 Marine Parade Despatch Note: DN: 689041 Melbourne Purchase Order Reference: PO: 689041 14 June 2019 Authorised: YES Code Description Qty 36356 32 cm Panasonic TV Driver: P Phillips I declare that all goods were received and no damage noted. Customer Signature: Sharon Smith 14/6/2019JB HI HI Tax Invoice To: Myer - Sydney 26 Pitt Street Invoice Number: 665045 Sydney Purchase Order Reference: PO: 665045 28 February 2019 Despatch Reference: DO: 665045 Code Description Qty Price per Unit Total Price 47723 32 cm Sony TV 324.00 972.00 37885 40 cm Panasonic TV 376.00 752.00 Total $1,724.00 GST 172.40 Total 1,896.40 Payment due 29 March 2019 JB HI HI Despatch Note To: Myer - Sydney 26 Pitt Street Despatch Note: DN: 665045 Sydney Purchase Order Reference: PO: 665045 27 February 2019 Authorised: YES Code Description Qty 47723 32 cm Sony TV 37885 40 cm Panasonic TV Driver: P Phillips I declare that all goods were received and no damage noted. Customer Signature: Phillin Jones 27/2/2019JB HI HI Tax Invoice To: Anytime Fitness - Brisbane 23 Sussex Street Invoice Number: 664778 Brisbane Purchase Order Reference: PO: 664778 24 Februaryl 2019 Despatch Reference: DO: 664778 Code Description Qty Price per Unit Total Price 46843 48 cm Sony TV 423.00 1,269.00 48234 40 cm Sony TV 388.00 776.00 Total $2,045.00 GST 204.50 Total 2,249.50 Payment due 25 March 2019 JB HI HI Despatch Note To: Anytime Fitness - Brisbane 23 Sussex Street Despatch Note: DN: 664778 Brisbane Purchase Order Reference: PO: 664778 22 February 2019 Authorised: YES Code Description Qty 46843 48 cm Sony TV 48234 40 cm Sony TV N W / Driver: P Phillips I declare that all goods were received and no damage noted. Customer Signature: Peter Forwards 22/2/2019