You, CPA, recently hired by Blackrock Investment Ltd 's (BIL) internal audit department, are sitting in your office and planning for your upcoming meeting with the head of internal audit It is January 20, 2022 You just returned from a week visiting Canadian Airborn Technologies (CAT), BIL's newest subsidiary CAT had been part of the BIL group of companies since late in 2015 and, up to now, had never been visited by internal auditors As is standard practice at BIL, the internal audit department visits the subsidiary companies once a year to check on the functioning of the accounting systems and internal controls and make sure that policies and procedures are being adhered to This was your first assignment, and you thought it was tough because you had to prepare a report only addressing the financial reporting issues you found related to IFRS Automobile System (20 marks) AEI began system Autocar at the request of many customers, a project aimed at developing a module, mainly for self driven cars There was a need for software that could evaluate data from self drive cars in real time to check the situations and reactions on the road continually The following timetable applies to this project Date Work completed on the project Amount spent to date (cumulative) January 2020 Project began January 2020 April 2020 Numerous computer algorithms were examined to decide which would be the most suitable for self driving automobiles $30,000 April 2020 July 2020 Our algorithm was chosen, and the system was programmed $50,000 July 2020 August 2020 Testing of the system CAT's first attempt to implement a system that continuously refreshed often broke due to the system's need to report real time data 24 hours a day $5,000 August 2020 October 2020 They were testing several fixes to the crashing problem on a continuous basis By mid October, the programmers had identified the issue and created a remedy that required more software code adjustments By the end of October, the adjustments were complete $15,000 October 2020 December 2020 Programming is required to connect the system to the car $20,000 During the first three months of 2021, the project team expects to complete the system The remaining $30,000 will be used to test the program against accurate customer data, and $5,000 will be used to promote and hold an event to announce the new system As of date, all costs associated with the project have been capitalized Please help with case analysis

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You, CPA, recently hired by Blackrock Investment Ltd.'s (BIL) internal audit department, are sitting in your office and planning for your upcoming meeting with the

You, CPA, recently hired by Blackrock Investment Ltd.'s (BIL) internal audit department, are sitting in your office and planning for your upcoming meeting with the head of internal audit. It is January 20, 2022. You just returned from a week visiting Canadian Airborn Technologies (CAT), BIL's newest subsidiary.

CAT had been part of the BIL group of companies since late in 2015 and, up to now, had never been visited by internal auditors. As is standard practice at BIL, the internal audit department visits the subsidiary companies once a year to check on the functioning of the accounting systems and internal controls and make sure that policies and procedures are being adhered to.

This was your first assignment, and you thought it was tough because you had to prepare a report only addressing the financial reporting issues you found related to IFRS.

Automobile System (20 marks)

AEI began "system Autocar" at the request of many customers, a project aimed at developing a module, mainly for self-driven cars. There was a need for software that could evaluate data from self-drive cars in real-time to check the situations and reactions on the road continually. The following timetable applies to this project:

Date	Work completed on the project	Amount spent to date (cumulative)
January 2020	Project began	-
January 2020 April 2020	Numerous computer algorithms were examined to decide which would be the most suitable for self-driving automobiles.	$30,000
April 2020 July 2020	Our algorithm was chosen, and the system was programmed	$50,000
July 2020 August 2020	Testing of the system. CAT's first attempt to implement a system that continuously refreshed often broke due to the system's need to report real-time data 24 hours a day.	$5,000
August 2020 October 2020	They were testing several fixes to the crashing problem on a continuous basis. By mid-October, the programmers had identified the issue and created a remedy that required more software code adjustments. By the end of October, the adjustments were complete.	$15,000
October 2020 December 2020	Programming is required to connect the system to the car.	$20,000

During the first three months of 2021, the project team expects to complete the system. The remaining $30,000 will be used to test the program against accurate customer data, and $5,000 will be used to promote and hold an event to announce the new system. As of date, all costs associated with the project have been capitalized.

Please help with case analysis