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You are auditing the accounts payable and purchases at XYZ Pty Ltd (XYZ). One of XYZs major creditors, JKL Ltd (JKL), is very slow in
- You are auditing the accounts payable and purchases at XYZ Pty Ltd (XYZ). One of XYZs major creditors, JKL Ltd (JKL), is very slow in sending invoices for goods delivered. Also, due to a quality control problem at JKL, a large number of goods supplied to XYZ have been deemed faulty and have had to be returned to JKL with a request for credit.
- You are auditing the accounts receivable and sales of Middle Eastern Traders Ltd (MET). All of METs customers are in the Middle East. Due to language differences, and the current political situation in many countries, direct confirmation of accounts receivable balances is unlikely to result in satisfactory results.
- List the key audit assertion(s) at risk in relation to the balances described in each of the situations above.
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