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You are an auditor at Hanafi, Razlan & Bakar - a firm based in Alor Setar. Recently, you and your team are assigned to audit

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You are an auditor at Hanafi, Razlan & Bakar - a firm based in Alor Setar. Recently, you and your team are assigned to audit the financial statement of Maya Son. Bhd a manufacturing company that produces and sells garments to various retail stores. Your senior in-charge has allocated three accounts for you to perform audit work on: Inventory, Accounts Payable, and Sales Revenue accounts. Below is the excerpt from the current year's Trial Balance (2017) and comparative figures from previous year's audited account (2016) for these three accounts. 2017 Audited 2016 Dr (Cr) Dr (Cr) RM RM Inventories 3,572,000 3,040,000 Accounts Payable (2,109,000) (2,987,000) Sales Revenue (31,320,000) (28,700,000) You are aware that the "International Standard on Auditing 500 (ISA 500) Audit Evidence" requires that the auditor shall design and perform audit procedures that are appropriate in the circumstances to obtain sufficient and appropriate audit evidence. Audit evidence comprises both information that supports and corroborates management's assertions, and any information that contradicts such assertions. REQUIRED: (a) Explain the meaning of each of the following terms: i. Sufficiency of evidence. ii. Appropriateness of evidence. ifi. Management's assertions. (b) For each of the account balance: i. State TWO (2) most important management assertions. ii. Explain the relevant audit objectives for each of the assertions identified in (i). iii. Explain the related audit procedures to obtain audit evidence for each of the audit objectives identified in (ii). Please organize your answer in the following format: Account Balance (i) Two management (ii) Relevant audit (iii) Related audit assertions objectives procedures Inventories Accounts Payable Sales/Revenue

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