- ATHE Level 6 Unit 2: Assesses the impact of leadership and management skills and behaviours : Personal Leadership and Management Development Assignment, UK
- QUALIFI Level 5 Part 02 Unit 9500: A pilot Research Project is the small scale research project that is intended to highlight the pros: Research Project, UK
- QUALIFI Level 5 Part 01 Unit 9500: Research Project, UK Professional Development Academy
- You are to prepare a discussion paper aimed at the group of middle managers in your organisation : Personal Leadership and development, Assignment, UK
- Critically analyse the environment facing YourOrg, and identify the central issues confronting YourOrg resulting : Strategic Management Assignment , CMU, UK
- Unit 15: This assignment requires you to analyse, design, develop, and evaluate an Internet of Things (IoT) application: Transport Network Design (L5), Assignment BTEC, UK
- Clearly differentiate the terms organisational mission, vision and strategy: Strategic Leadership And Management In Context, Assignment, UK
- ATHE Level 7 : Understand the importance of financial data in formulating and delivering business strategy : Finance for Strategic Managers, Assignment UK
- CMI Unit 703 : Collaboration and partnerships can turn ideas into reality, enhancing opportunities for innovation and creativity, research and development : Collaboration and Partnerships, Assignment, UK
- 7OS01- Explain how the Employment Tribunal, the County Court, The Health and Safety Executive and the Information Commissioner : Advanced employment law in practice, Assignment, UK
- ILM 308 – Describe the factors that will influence the choice of leadership styles or behaviours in workplace situations: Understanding Leadership Level 3 Assignment , UK
- Level 5 CMI Unit 526 – Mark Sheet: Principles of Leadership Practice, UK
- Level 5 CMI Unit 526 : Understanding of ethical leadership and the impact of culture and values on leadership- Principles of Leadership Practice, Assignment, UK
- CMI Unit 501: Examine the impact of legal status on the governance of an organisation- Principles Of Management And Leadership In An Organisational Context Level 5 Assignment, UK
- ILM Level 5 Effective Communication Skills, Assignment , UK
- ILM Level 3 – Describe the factors that will influence the choice of leadership styles or behaviours in workplace situations Referral : Understanding Leadership styles, Assignment, UK
- CMI Unit 502 Understand approaches to developing, managing, and leading teams: Principles of Developing, Managing and Leading Individuals and Teams to Achieve Success, Assignment, UK
- R033 Supporting individuals through life events, Set Assignment, OCR, UK
- Working in partnership in health and social care, Assignment, UK
- CMI Unit 5034 Problem solving tools and techniques for consultants, Assignment, UK
FIN6002: You are an audit senior in the firm, Grant Smithson & Partners, and have been assigned the audit of Handel’s World Ltd: Audit Assignment, AU, UK
| University | Arden University (AU) |
| Subject | FIN6002 Audit |
Question 1
You are an audit senior in the firm, Grant Smithson & Partners, and have been assigned the audit of Handel’s World Ltd, for the year ended 31 March 2023. Handel’s World Ltd has been in operation for fifteen years, but has only just appointed Grant Smithson & Partners as its external auditors. The company operates four stores countrywide, selling a quality range of musical instruments such as; electric or acoustic guitars, brass instruments; drums, percussion instruments; keyboards, pianos, and instrument accessories among others.
For several years, Handel’s World Ltd has maintained perpetual records of inventory at each of its four stores. Nevertheless, it has continued to determine closing inventory by stocktaking at or near the year end. In the course of the year end audit you hold discussions with the company’s chief accountant, and she informs you that the company is intending to dispense with annual stocktaking and to rely on the perpetual records in determining closing inventory. Do You Need Assignment of This Question
The company operates a centralised computer system networked to terminals and point of sale registers in each store. Last year’s audit file indicates that control risks over purchase and sale transactions were assessed as low for occurrence, completeness and measurement assertions. However, the control risk assessment did not extend to the recording of sale and purchase transactions into the inventory records since inventory was determined by physical count. The description of the accounting system shows inventory as being delivered directly to each store.
The manufacturers attach a bar–coded tag to each item. On delivery, store personnel physically check each item with the description coded on the tag. They then scan the tags. The networked computer verifies the goods against the order and records them on the store’s inventory records. At the point of sale, the tag is again scanned which both records the sale and removes the item from inventory records.
During the past year, the company’s computing department has rewritten the inventory control system to incorporate inventory costs as well as quantities. The computer system now records cost at the point of delivery. On sale, the computer determines cost of sale on a first–in–first– out (FIFO) basis and recalculates the cost of inventory on hand at each Store.
Required:
a) Explain why Inventory is considered a major area of importance for the external auditor in carrying out an audit of financial statements.
b) Describe the substantive procedures you would perform, both during the year and as at year end, in order to verify the completeness and existence of inventories.
c) Distinguish between “auditing around the computer” and “auditing through the computer”.
Buy Answer of This Assessment & Raise Your Grades
Answer
