Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are the audit partner in charge of the interim audit at 30 June 2016 for Ashley Pty Ltd, a large manufacturing company. You were
You are the audit partner in charge of the interim audit at 30 June 2016 for Ashley Pty Ltd, a large manufacturing company. You were the worlant per prepared by your audit team and notice the following matter listed below. The audit assistance performed tests of control on paypoll receipts.on sample of 61 items six control breaches were noted. The assistant reported: "As all the errors were immaterial and the error rate was below the critical level of 10 percent mention in the accounting Standards, no further work was performed. Controls over goods receipt can be relied upon." Required: For the scenario explain with reference to audit assertions, whether appropriate audit evidence has been obtained Yes/No. Give Reasons and indicate which audit assertion(s). If any, require more audit effort. You are the audit partner in charge of the interim audit at 30 June 2016 for Ashley Pty Ltd, a large manufacturing company. You were the worlant per prepared by your audit team and notice the following matter listed below. The audit assistance performed tests of control on paypoll receipts.on sample of 61 items six control breaches were noted. The assistant reported: "As all the errors were immaterial and the error rate was below the critical level of 10 percent mention in the accounting Standards, no further work was performed. Controls over goods receipt can be relied upon." Required: For the scenario explain with reference to audit assertions, whether appropriate audit evidence has been obtained Yes/No. Give Reasons and indicate which audit assertion(s). If any, require more audit effort
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started