Question 2

Aigiris Ltd sells a range of home furniture by recycling and refurbishing old furniture and other wood, metal, glass and plastic products obtained from a variety of sources such as derelict buildings, auctions and so on. Revenue comes from sales to the public and businesses such as hotels and restaurants. Some small items are collected by customers but generally goods are delivered by Aigiris Ltd. The directors have reported that it has been another good year for the organisation and that they expect the coming year to be successful.

The draft income statement for 2020 together with audited figures for 2019 are given below.

Required

You are planning the audit of Aigiris Ltd for the year ended 30 June 2020, discuss the issues to be considered in your audit planning from the information contained in the income statements.