You are an audit senior and your firm audits Daicos Ltd, a large mining company that...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You are an audit senior and your firm audits Daicos Ltd, a large mining company that operates all over Australia. Consider the following situations that have arisen during the audit. 1. Daicos owns some highly specialised mining tools and equipment held at various remote regions across the country. Your firm has engaged an expert to carry out a physical audit check of these equipment and tools at each location and to perform an independent valuation of each material asset. 2. In reviewing the account receivables of Daicos, you realise that the majority of Daicos's customers are in Indonesia and other parts of remote South-East Asia. Because of communication difficulties, direct confirmation of the accounts receivables' balances is unlikely to give satisfactory results. 3. During the audit you also notice that Daicos owns the majority of shares in related, unlisted companies in Australia. Required (a) Identify the key assertion(s) at risk in relation to the balances described in each of these three situations. (10 marks - situations 1 and 2 are worth 4 marks each, situation 3 is worth 2 marks) (b) Describe the audit procedures you would perform to gather sufficient appropriate audit evidence on each of these assertions. (10 marks - situations 1 and 2 are worth 4 marks each, situation 3 is You are an audit senior and your firm audits Daicos Ltd, a large mining company that operates all over Australia. Consider the following situations that have arisen during the audit. 1. Daicos owns some highly specialised mining tools and equipment held at various remote regions across the country. Your firm has engaged an expert to carry out a physical audit check of these equipment and tools at each location and to perform an independent valuation of each material asset. 2. In reviewing the account receivables of Daicos, you realise that the majority of Daicos's customers are in Indonesia and other parts of remote South-East Asia. Because of communication difficulties, direct confirmation of the accounts receivables' balances is unlikely to give satisfactory results. 3. During the audit you also notice that Daicos owns the majority of shares in related, unlisted companies in Australia. Required (a) Identify the key assertion(s) at risk in relation to the balances described in each of these three situations. (10 marks - situations 1 and 2 are worth 4 marks each, situation 3 is worth 2 marks) (b) Describe the audit procedures you would perform to gather sufficient appropriate audit evidence on each of these assertions. (10 marks - situations 1 and 2 are worth 4 marks each, situation 3 is
Expert Answer:
Answer rating: 100% (QA)
a Identifying Key Assertions at Risk 1 Situation 1 Physical Auditing of Mining Tools and Equipment Key Assertion at Risk Existence and Valuation Exist... View the full answer
Related Book For
Auditing Cases An Interactive Learning Approach
ISBN: 978-0133852103
6th edition
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
Posted Date:
Students also viewed these accounting questions
-
Consider two vectors A and B. A = 141 +16] and B = 171 - 197 Find the unit vector that points in the same direction as the vector A + 2B. Write the unit vector in the form VN (U + U})
-
Find Dischange channel show has slop 1:2000 and and wean shear stress in Du17 w.L 3. .0
-
Write MATLAB code of the question. Do all parts and show code with comments and also attach a screenshot of code and outputs. Using the results of Problem 4.13, verify the following properties of WN...
-
A microscope has an eyepiece that gives an angular magnification of 5.00 for a final image at infinity and an objective lens of focal length 15.0 mm. The tube length of the microscope is 16.0 cm. (a)...
-
Use any method to determine if the series converges or diverges. Give reasons for your answer. IM n=1 n! Inn n(n + 2)!
-
Make decisions in the situations described in the Ethical Behavior Worksheet. You will not have all the background information on each situation; instead, you should make whatever assumptions you...
-
A gas containing water vapor has a dry-basis composition of 8.5 mole% CO. 10.5% CO2, 0.5% O2, and 80.5% N2. The gas leaves a catalyst regeneration unit at 620C and 1 atm with a dew point of 57C at a...
-
What is one of the Oracle database upgrade methods. Which of the methods offers the least control over the upgrade process? Please explain thoroughly because I am having a hard time with this subject...
-
What would be a good response to this? I am a global campus student in my senior year earning a BA in Social Services. My name is Julie Perry, and I've worked in an amazing program called PCAP in...
-
what are some age appropriate resources that provoke interests of infants, toddlers and pre-schoolers for their learning and development.
-
A stock is expected to return 12% in a normal economy and -22% in a recession. There is a 55% probability of a recession. What is the expected return of this stock?
-
Example for what to say asking people to donate for a fundraiser for basketball?
-
What is the importance of having the right people get the right pay for achieving the right objectives in the right way? What is the important role of pay in supporting the business strategy and the...
-
Firm Foundations sues Rockbed Foundations and a Rockbed employee for disparaging statements made about the Firm by the employee in a construction Internet chat room hosted by Rockbed. What accurately...
-
For the past 50 days, daily sales of a specialty product in a large grocery store have been recorded: Units Sold Number of Times 10 8 20 18 30 10 40 8 50 6 What is the average number of units sold?...
-
Show, if u(x, y) and v(x, y) are harmonic functions, that u + v must be a harmonic function but that uv need not be a harmonic function. Is e"e" a harmonic function?
-
You are studying survival times for mice given a drug at one of three doses (Low, Medium, or High). You define two dummy variables: (a) With these definitions, write the expressions for the mean...
-
The data in Table 8.25 were collected in order to study factors affecting the supply and demand for commercial air travel. Data on various aspects of commercial air travel for an arbitrarily chosen...
-
It is beneficial to be able to estimate the yield of useful product of a tree based on measurements of the tree taken before it is harvested. Measurements on four such variables were taken on a...
Study smarter with the SolutionInn App