Question 15 3 pts This question is based on the "NPI" fact pattern above. The Average A/R turnover ratio is often used to help an auditor to identify potential concern(s) with the Accounts Receivable account balance. For purposes of this question only, assume the following data for NPI: NPI Current Year NPI Prior Year Industry Average Average A/R turnover ratio 17.5 29.50 30.96 Based on the information provided, what auditor concerns do you have regarding NPI's Accounts Receivable balance? Which statements below are correct regarding NPI's Accounts Receivable balance? Select all the statements below that are correct. O We would be concerned about the adequacy of Allowance for Doubtful Accounts. This relates to the Accuracy/Valuation/Allocation assertion for A/R. O A/R is turning over more slowly than in prior year and compared to industry average. O We would be concerned about the adequacy of Allowance for Doubtful Accounts. This relates to the existence assertion for A/R. O We should plan to increase/improve the "nature, extent and timing" of our audit procedures during the testing phase due to the higher risk pertaining to the Completeness assertion of A/R. O This slower turnover likely reflects the loosened credit policy. O This slower turnover likely reflects the fact that higher-risk customers are being granted credit. O We should plan to increase/improve the "nature, extent and timing" of our audit procedures during the testing phase due to the higher risk pertaining to the Accuracy, Valuation, Allocation assertion of A/R. O A/R is turning over faster than in prior year and compared to industry average. O We should plan to increase the "extent"of our audit procedures during the testing/execution phase due to this higher risk pertaining to the Valuation assertion of A/R. The "nature" and "timing" decisions are not significant in this circumstance. O This faster turnover likely reflects the loosened credit policy (45-day payment period, rather than 30 days).The next few questions will be based on the following fact pattern. Your client is Wireless Networking Limited ("WNL"), a private company with a year-end of December 31. WNL chooses to report under ASPE. Just prior to year end, on November 30, WNL acquired 1,000 common shares of Telus through a stock broker for a total cost of $40,000. As required by ASPE, WNL is required to account for its investment in Telus at fair value through profit/loss (FVPL). Assume that you are a junior auditor and you have been assigned to audit this investment in Telus. Assume that the reported amount on the balance sheet is $42,000. Question 16 3 pts This question is based on the WNL fact pattern above. Focus on the "existence" assertion. What are examples of "nature" of audit procedures that might be used by you to audit the "existence" of the investment as of December 31. (Select any procedures that are appropriate.) Review the broker statement at December 31 to ensure that all shares of Telus have been included in the reported amount on the balance sheet. O Obtain the December broker statement and ensure that the client holds 1,000 common shares of Telus as of December 31. Check that the Telus shares are disclosed properly in the financial statements and notes. Send a letter to WNL's broker to obtain a confirmation that WNL is holding 1000 shares of Telus at December 31. O Review the broker statement at the date of purchase and verify the cost paid for the shares of Telus