Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 2.B Consider the following audit work performed by two auditors, Suzy and Gary: (a) Suzy attended the clients year-end stocktake and observed that the

QUESTION 2.B

Consider the following audit work performed by two auditors, Suzy and Gary:

(a) Suzy attended the clients year-end stocktake and observed that the client followed the stocktake instructions. She selected numerous items for test counting from the clients inventory sheets and all were found to be correct. Cut-off details were noted and subsequently checked and found to be correctly treated. Suzy concluded that inventory was fairly stated.

(b) Maintenance expenses were material, although it was only 50% of last years balance. Gary selected a large sample of entries and agreed them to supporting documents. No errors were found. Gary concluded that maintenance expenses were reasonable.

Required: Indicate whether sufficient appropriate audit evidence has been obtained to support the conclusions for the inventory and maintenance expenses accounts.

Explain your answers.

Thank you for your help :)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Risk Based Auditing

Authors: Phil Griffiths

1st Edition

0566086522, 9780566086526

More Books

Students also viewed these Accounting questions

Question

Explain how real option valuation (ROV) is applied.

Answered: 1 week ago

Question

=+) What does the slope say about marriage ages since 1975?

Answered: 1 week ago

Question

What is meant by the term industrial relations?

Answered: 1 week ago