Question: You have been assigned to audit the financial statement below for Benbrook Shoppe a small retail outlet for consumer shopping products in your local city.

You have been assigned to audit the financial statement below for Benbrook Shoppe a small retail outlet for consumer shopping products in your local city. Benbrook Shoppe Statement of Financial Position as of 31 December 2020

Non-Current Assets Land and Buildings Furniture and Equipment 225,388 70,000 295,388

Current Assets Inventory Receivables Bank 21453 21320 39220 81,993 377,381

Financed by: Ordinary Shares 150,000

Non-current liabilities: Bank loan 205,000

Current liabilities Payables 22,381 257,381 377,371

Required:

A. Use relevant examples from the financial statement above, explain FIVE (5) financial statement assertions that the management of Benbrook Shoppe is making when the set of completed financial statements are signed off at year-end.

B. Assess ONE (1) audit procedure you could use to obtain audit evidence to substantiate EACH of the assertion identified in (A.) above.

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