Пятое задание по аудиту "стоит" 20 марок и должно быть выполнено за 1,8*20 = 36 минут. Традиционно пятое задание - это сценарий, по которому необходимо применить теоретические знания к конкретным специфическим условиям сценария.
Question 5
Fire in warehouse
(i) Describe the additional audit procedures you will carry out;
(4 marks, 4*1.8 minutes = 7 minutes, 1 mark for each procedure)
1. Discuss the matter with management whether EastVale has sufficient inventory to comply short-term orders of supermarkets.
2. Enquire the directors if EastVale can continue the trading in long-term period. Obtain the written representation to this effect.
3. Estimate the value of inventory destroyed in the fire.
4. Inspect insurance documents for likelihood of compensation being received to replace the damaged stock.
5. Inspect the rental agreement for warehouse for penalty that may be imposed in the case of damage to the warehouse. Consider the need for provision.
(ii) State, with reasons, whether or not the financial statements for the year-end require amendment;
(3 marks, 3*1.8=5 minutes, 1 mark for each reason)
