If you are vouching a sample of items from a general ledger account back to an associated subsidiary ledger, through the associated journal to associated source documents (for the original transaction/event), what assertion would you be primarily testing? (1 mark)
If you are tracing a sample of items from a file of source documents through the associated journal to an associated subsidiary ledger and general ledger account, what assertion would you be primarily testing? (1 mark)

PART B

As an audit supervisor, you are reviewing the work of a new engagement team member during the financial report audit of a large proprietary company client. During your review you have made a few notes for things to ask the new engagement team member during your work paper review. You will take careful note of their responses for potential insights about their knowledge so you can recommend tailored future professional development for the team member.

Identify the requirement for quality control being illustrated by your reviewing the work of the new engagement team member? Be sure to also indicate the relevant ASA number and paragraph.

ASA 220

Requirement for the quality control are

1 . leadership responsibility for quality on audits

2. relevant ethical requirements

3. acceptance and comtinuance of client relationship and audit engagements

4. assignment of engagement teams

5 engagement performance

6 , monitoring

7. documentation

Your review reveals the new engagement team member had selected a sample of additions from the non-current asset subsidiary ledger (register) as per the audit program and checked each addition to the supporting creditor’s invoice. You ask the new engagement team member to briefly explain to you which assertions are being tested by this step in the audit program. (6 marks)
The sample from the non-current asset subsidiary ledger of audit client has brought into focus the replacement of several material Property, Plant & Equipment (PPE) assets in use at several remote locations in Western Queensland. The PPE assets are very specialised in nature and had been individually engineered to specification and their operation is crucial to your client’s success. You consult with your engagement manager and partner and they decide it will be necessary to undertake an additional substantive procedure for these assets, having the assets inspected on location.

What requirement for quality control is being illustrated by your (the audit supervisor) seeking the advice of your manager and engagement partner? Be sure to also indicate the relevant ASA number and paragraph.

You ask the new engagement team member which assertion they would be primarily testing when applying the additional substantive procedure of inspecting these PPE additions on location for this client?

You ask the new engagement team member to describe any pragmatic and professional implications your engagement team might explore (that is, discuss possible alternatives) as options for reliable ways to gather sufficient appropriate audit evidence to satisfy the primary assertions for the PPE additions in this scenario.)