You worked as a staff auditor for E&Y assigned to their audit of the videos game company called Black Dessert Inc. They assign you the expense portion of the audit to complete by yourself.

1. What are three risks you should be concerned with on this audit?

2. What are three tests you would conduct? Name one assertion you would be testing as part of each test?

-Physical observation - see the condition (valuation), verify existence

-Request a Listing of Inventory -Does the listing agree to what you saw in the physical observation - verify completeness

-Verify people were paid, look at time cards, confirm wage rates from personal files

3. What are two controls you would expect to see? Explain