Question
You are the auditor for Dash Deliveries (DD), a company that delivers packages for a range of retailers across Sydney. DD pays drivers a flat
You are the auditor for Dash Deliveries (DD), a company that delivers packages for a range of retailers across Sydney. DD pays drivers a flat rate per 8-hour shift. Last year there were no overtime payments permitted. From the beginning of this year (following a negotiation with the driver's union) drivers are entitled to overtime payments if they are required to deliver more than 60 packages or the deliveries are in more than 5 suburbs. You note that this year's wages expense is approximately the same as last year, with few overtime payments.
Relying on the information provided above only - i.e. do not create your own facts - in relation to Dash Deliveries' wages expense account,
1/ Identify the key assertion at risk.
2/ Explain why this represents a risk to the auditor.
3/ Outline a specific, practical preventive control that would directly address the risk.
4/ Outline how you would test the preventive control recommended in (3) above.
5/ Outline a specific, practical detective control that would directly address the risk.
6/ Outline how you would test the detective control recommended in (5) above.
Step by Step Solution
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The key Assertions about classes of the transactions i Occurrence the transactions as well as the ev...Get Instant Access to Expert-Tailored Solutions
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