You are the auditor of Pets Paradise Limited (PPL), a national chain of dog wellness centres that
Question:
You are the auditor of Pets Paradise Limited (PPL), a national chain of dog wellness centres that feature dog day care and boarding facilities. Three of PPL's wellness centres were refurbished during the year. The CFO, Ashely Carbone, mentioned to you that 'sometimes it can be dicult to distinguish between capital improvements and maintenance expenditure'. PPL also sells premium dog food.
PPL invoices customers upfront for the boarding facilities. PPL recently changed its billing system to a new o-the-shelf system. Since the system went 'live', there have been a few instances of incorrect amounts being billed to the customer.
Inventory turnover has slowed dramatically over the past year. This is an issue for some of the premium dog food lines, which have a relatively short shelf life.
REQUIRED Identify and explain the accounts and nancial report assertions that you believe would be assessed as high risk.