Whilst conducting procedures on various cycles on the audit of Hallmark $($Pty$)$ Ltd a wholesaler of stationery and paper products, the following situations arose:

$1.$

Several customer invoices which had subsequently been entered into the sales journal were found not to have been issued by Hallmark $($Pty$)$ Ltd$.$

$2.$

No sale invoices have been raised for several Hallmark $($Pty$)$ Ltd dispatch $($delivery$)$ notes which had been signed by the customer and matched to customer$$s order.

$3.$

VAT on all sales for the month of January $($financial year$-$end $31$ March$)$ had been charged at $10\%($instead of $15\%)$ due to an error in processing. By year end no correction of this error had taken place.

$4.$

A number of credit sales made in the first two weeks of the new financial year were included in the March sales due to a mix up with dates on the dispatch notes.

$5.$

Numerous errors were found in the treatment and calculation of discount allowed to customers.

$6.$

The financial statements have been prepared by the CEO who has an MBA qualification and has no knowledge of the entity$$s reporting framework.

$7.$

No provision for impairment of debts has been provided for in the financial statements.

$8.$

Transactions not relating to the current accounting period were included in the reported financial results for the current period.

$9.$

Several fixed assets were not depreciated since the CEO does not believe the deprecation concept makes sense to him.

$10.$

About R$10$million worth of revenue was recognized before the goods were manufactured when the agreement with the customer clearly stipulates that goods must be delivered before the payment by the customer can be made. The customer made a prepayment of the order to assist with the cash flow challenges.

YOU ARE REQUIRED TO:

Identify and briefly discuss the assertions which would be affected by each of the above $(20$ marks$)$

$($Hint: some of the $10$ observations above cash affect more than one assertion$)$