Question 4 (8 points) Being a phone manufacturer, Hydra Ltd has a reputation for selling an innovative smartphone known as the 'Soldier! Soldier was launched in July 2018 and was the pioneer in the industry for including health monitoring systems, also allowing potential identification of common health conditions and diseases. Due to this technology, it is only sold through Hydra's website charging a premium price and currently retails for $9,750. Hydra's retails several other accessories, including cables, ports etc., however, Soldier is the main product line. In an attempt to keep the technology confidential, the products are manufactured at Hydra's main factory. The warehouse is located in the western suburbs of Hobart that employs 45 full-time staff members. When Hydra discovered that some of the manufacturing equipment did not work effectively, they encountered problems leading up to the launch of Soldier. These issues delayed the production, and Hydra employed a significant group of casual members to meet the deadline. Due to the tight schedule the product testing was reduced along with stocktakes, i.e., stocktakes were previously conducted every month, however, this has been postponed until after the launch. Hydra's senior management travel the world extensively to search for new technology, especially during 2018. The senior managers arrived just in time for the launch of Soldier. The duties of the senior managers were delegated to other middle managers during this time of absence. Required: Assume you are planning the 2018 audit of Hydra Ltd Question 4 (8 points) Being a phone manufacturer, Hydra Ltd has a reputation for selling an innovative smartphone known as the 'Soldier! Soldier was launched in July 2018 and was the pioneer in the industry for including health monitoring systems, also allowing potential identification of common health conditions and diseases. Due to this technology, it is only sold through Hydra's website charging a premium price and currently retails for $9,750. Hydra's retails several other accessories, including cables, ports etc., however, Soldier is the main product line. In an attempt to keep the technology confidential, the products are manufactured at Hydra's main factory. The warehouse is located in the western suburbs of Hobart that employs 45 full-time staff members. When Hydra discovered that some of the manufacturing equipment did not work effectively, they encountered problems leading up to the launch of Soldier. These issues delayed the production, and Hydra employed a significant group of casual members to meet the deadline. Due to the tight schedule the product testing was reduced along with stocktakes, i.e., stocktakes were previously conducted every month, however, this has been postponed until after the launch. Hydra's senior management travel the world extensively to search for new technology, especially during 2018. The senior managers arrived just in time for the launch of Soldier. The duties of the senior managers were delegated to other middle managers during this time of absence. Required: Assume you are planning the 2018 audit of Hydra Ltd

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