·
must relate to material misstatements or detection
risk
NEW CLIENT
not familiar with policies transactions balances
·
, ,
·
↑ detection risk
-
Response-experienced team ,
,
adequate time
increased procedures on
opening balances.
PPE EXPENDITURE
·
capitalised or expensed
ppt overstated , expenses understated
response-schedule
mastecapaused
naturecost
·
NEW SYSTEM
·
not run in parallel with old
a
opening wanferred
ballnot
cant
is
identify
· ,
and test
Response-fully document new
system .
-
substantive tests on . bals
opening
-
discuss with Id if any issues have ansen
-
, OVERDUE RECEIVABLES
·
no increase receivables
in allowance for
·
receivables overstated allowance understated ,
-
Response-discuss with credit controller the liktihond
of recovering
overdue balances.
extended
out
carry
cash
post-year-end
-
receipt
have
testing
been cleared
to
identify if overdue bale
discuss need to increase
with
fd allowanc
-
SUPPLIER STATEMENT REC
number
of supplier statements indicate higher bal
·
individual supplier bab.
owing than
not
investigated
cut-off incorrect payables cost
of sales expenses under
·
, , ,
stated
-
Response-review supplier statement rec and ask
why not
investigated
-
Review after-date purchase invoices to
determine if current year if so accrue ,
DAMAGED INVENTORY
requires NRV.
1AS2 inv recognised at lower of cost +
·
·
If can't be repaired and inv not at NRV ,
in
overstated
increased
,
cost
of sales understated .
days
·
in also shows this .
Response-discuss with fo is
written down to NRU
-
must relate to material misstatements or detection
risk
NEW CLIENT
not familiar with policies transactions balances
·
, ,
·
↑ detection risk
-
Response-experienced team ,
,
adequate time
increased procedures on
opening balances.
PPE EXPENDITURE
·
capitalised or expensed
ppt overstated , expenses understated
response-schedule
mastecapaused
naturecost
·
NEW SYSTEM
·
not run in parallel with old
a
opening wanferred
ballnot
cant
is
identify
· ,
and test
Response-fully document new
system .
-
substantive tests on . bals
opening
-
discuss with Id if any issues have ansen
-
, OVERDUE RECEIVABLES
·
no increase receivables
in allowance for
·
receivables overstated allowance understated ,
-
Response-discuss with credit controller the liktihond
of recovering
overdue balances.
extended
out
carry
cash
post-year-end
-
receipt
have
testing
been cleared
to
identify if overdue bale
discuss need to increase
with
fd allowanc
-
SUPPLIER STATEMENT REC
number
of supplier statements indicate higher bal
·
individual supplier bab.
owing than
not
investigated
cut-off incorrect payables cost
of sales expenses under
·
, , ,
stated
-
Response-review supplier statement rec and ask
why not
investigated
-
Review after-date purchase invoices to
determine if current year if so accrue ,
DAMAGED INVENTORY
requires NRV.
1AS2 inv recognised at lower of cost +
·
·
If can't be repaired and inv not at NRV ,
in
overstated
increased
,
cost
of sales understated .
days
·
in also shows this .
Response-discuss with fo is
written down to NRU
-
