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You are the in-charge auditor for Mittens inc, a publicly traded company. The company went public last year and this is the second year that

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You are the in-charge auditor for Mittens inc, a publicly traded company. The company went public last year and this is the second year that you have performed the audit. The company sells mitfens both online via credit cards and po large retailers such as department stores and accessory shops. There are approximately 800 online customers and 50 retail customers. Last year, there were many errors and adjustments to the financial statements. The management of the company is very focused on growing the company and has not had time to develop controls and procedures. Management does noc believe in wasting time and effort to put in controls that they percelve to be administrative and burdensome. Due to significant turnover, the accounting department now has only 5 employees. As a result, duties are not segregated and employees perform most of the tasks without review or approval, In addition, employees work significant overtime and have not performed tasks such as cash collections and reconciliations. Management is struggling to raise debt financing and needs to show good growth and strong financial ratios. The mitten industry is siowing down due to the warmer climate change woridwide and the increase in giove sales. They have chosen aggressive accounting policies to optimize the company's performance. You are responsible for auditing the accounts receivable. revenues and inventory for the company. Details of select GL accounts are isted below: Beguired a) What audit approach (NQT audit procedures) would you use to audit revenues and accounts receivable and inventory? Justify your response. (5 marks) b) Based on your answer in part (a), list audit procedures, which are not analytical procedures (analytics), that you would perform to audit the following. (8 marks) - Revenve - two (2) audit procedures - Accounts recelvable - two (2) audit procedures - Allowance for Doubtful Accounts - two (2) audit procedures - Inventories-two (2) audit procedures

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