Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

3.23 Rating (150 Votes )

There are 3 Steps involved in it

Step: 1

The key Assertions about classes of the transactions i Occurrence the transactions as well as the ev... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance Services

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws

6th edition

978-1259197109, 77632281, 77862341, 1259197107, 9780077632281, 978-0077862343

More Books

Students also viewed these Accounting questions

Question

Explain the various techniques of Management Development.

Answered: 1 week ago

Question

Establish identity. cos( + k) = (-1)k cos , k any integer

Answered: 1 week ago

Question

What are the documentation retention requirements of AS 3?

Answered: 1 week ago