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PACC6002 Auditing And Assurance Services

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Question:

1. Assuming that going concern is not an issue, identify two (2) key asset accounts at risk. This will be from the Statement of Financial Position (Balance Sheet).
2. For EACH of the two asset accounts identified above:
a. Provide a brief explanation as to why the asset account is at risk;
b. List the key assertion (as per ASA315) where the audit effort should be concentrated; and
c. Describe one substantive test of detail you would perform to gather sufficient appropriate evidence in relation to the assertion identified in b. above.
3. Identify one Statement of Comprehensive Income (Income Statement) expense account at risk, which is unrelated to the asset accounts identified in 1 above. Provide a brief explanation of why it is at risk and list the key assertion.
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