Remember the following:
Manufacturer Risk assertion level inventory WIP/FG
Rapid growth Risk controls environment
Industry Regulations
Assertion cut-off
Foreign Laws and translation
GC if not sold
Going Concern
Largest customer
Pay fee
Liquidity A>L
Given the AFS
Solvency CA > CL
Reclassifying Liquidity of entity
journals Reckless trading if not liquid
PPE Impair CA > RA
Largest client of entity = reliance
Assertion valuation = credit terms passed
Payables Business rescue = write off indication of client
Adjusting = were these conditions present at year end & GC
Consider liquidity
Assertion occurrence
Decline sales
GC
Plan to continue
Business Rescue
GC
Risk & Rewards to following period
Vouchers Assertion cut-off & occurrence
Cannot recognise Revenue yet
Fraudulent
- Reportable irregularity
Consumables
Management Integrity
- Multiple balances fraud
Only be done if:
- Sufficient credit worthy checks been done = bad debts?
Credit sales
- Correctly analyse the debtor
- Low cash flow?
Estimates
Allowance credit
Assertion valuation
losses
Risk if methods are changed to recognise allowance for credit losses
Manufacturer Risk assertion level inventory WIP/FG
Rapid growth Risk controls environment
Industry Regulations
Assertion cut-off
Foreign Laws and translation
GC if not sold
Going Concern
Largest customer
Pay fee
Liquidity A>L
Given the AFS
Solvency CA > CL
Reclassifying Liquidity of entity
journals Reckless trading if not liquid
PPE Impair CA > RA
Largest client of entity = reliance
Assertion valuation = credit terms passed
Payables Business rescue = write off indication of client
Adjusting = were these conditions present at year end & GC
Consider liquidity
Assertion occurrence
Decline sales
GC
Plan to continue
Business Rescue
GC
Risk & Rewards to following period
Vouchers Assertion cut-off & occurrence
Cannot recognise Revenue yet
Fraudulent
- Reportable irregularity
Consumables
Management Integrity
- Multiple balances fraud
Only be done if:
- Sufficient credit worthy checks been done = bad debts?
Credit sales
- Correctly analyse the debtor
- Low cash flow?
Estimates
Allowance credit
Assertion valuation
losses
Risk if methods are changed to recognise allowance for credit losses
