You are planning the audit of the Bestari Holdings. You gather the following information. Consider the facts
Question:
You are planning the audit of the Bestari Holdings. You gather the following information. Consider the facts and describe how it concerns your assessment for transactions, account balances and disclosures of Bestari Holdings.
i) Management lacks experience.
ii) The inventory consists of a range of expensive jewellery.
iii) Taxation calculations are extremely complex.
iv) The entity is a computer manufacturer.
v) There are significant related party transactions.
vi) Management's rewards are heavily dependent on financial results.
vii) Provisions are a material liability.
viii) Internal auditors are involved mainly in administrative functions
ix) Some of the client's product range faces obsolescence issue.
Present your answer in the following structure:
Auditing and Assurance Services An Applied Approach
ISBN: 978-0073404004
1st edition
Authors: Iris Stuart