Background Information You are a graduate accountant with Taylor & Swift, a small auditing firm located in Brunswick, an inner suburb of Melbourne, Victoria. You have been assigned to the audit of a new client, Molly Mart, for the year ended 30th June 2023. Molly Mart is a Bayswater-based distributor of furniture items. You are planning the audit of accounts receivable, where preparatory work has revealed the following: Molly Mart has recently established an internal audit team, based on a recommendation of a student doing a work-integrated-placement. The internal audit team is headed up by Larry, the Assistant Accountant Clerk with a penchant for trialing various computer-assisted audit techniques. You are concerned about the impact this might have on the existence assertion. The backup generator has failed on a number of occasions in the past year, resulting in sales having to be manually entered into the system. This has made you concerned about the completeness assertion. Controls pertaining to the sales system are quite rudimentary. You are concerned about the lack of IT application controls and the accuracy, valuation and allocation assertion.

1. Analysis of 'Existence' Assertion: Prepared by: Student Name i. Explanation of the 'existence' assertion as it relates to Molly Mart: In this section: Clearly explain what is meant by 'existence' of accounts receivable (in your own words); discuss what would put the 'existence' of accounts receivable 'at risk' - ie. What are you looking for in the Molly Mart data file; What is driving your data interrogation etc... ii. Visualisation of data anomaly pertaining to the 'existence' of accounts receivable: In this section you are required to: Present a single professional visualization that clearly communicates the anomaly you have found relating to the 'existence' of accounts receivable at Molly Mart. The visualization must: Correctly relate to the 'existence' assertion; Clearly communicate the discovered, relevant anomaly; Please ask someone NOT enrolled in Auditing to tell you what the visualization is 'saying' to them. Not be in raw data format (eg. a screen shop from Excel); Have a title and other relevant, helpful labels; Provide a written explanation of the anomaly found (with reference to the visualization provided), clearly explaining why/how it relates to the 'existence' of accounts receivable at Molly Mart. iii. Discussion of follow-up required to further investigate 'existence' of accounts receivable: In this section: Discuss what additional work/focus would be appropriate (during the main audit evidence gathering phase) in order to learn more about the circumstances surrounding the anomaly? 2. Analysis of 'Completeness' Assertion: Prepared by: Student Name i. Explanation of the 'completeness' assertion as it relates to Molly Mart: In this section: Clearly explain what is meant by 'completeness' of accounts receivable (in your own words); discuss what would put the 'completeness' of accounts receivable 'at risk' - ie. What are you looking for in the Molly Mart data file; What is driving your data interrogation etc... ii. Visualisation of data anomaly pertaining to the 'existence' of accounts receivable: In this section you are required to: Present a single professional visualization that clearly communicates the anomaly you have found relating to the 'existence' of accounts receivable at Molly Mart. The visualization must: Correctly relate to the 'existence' assertion; Clearly communicate the discovered, relevant anomaly; Please ask someone NOT enrolled in Auditing to tell you what the visualization is 'saying' to them. Not be in raw data format (eg. a screen shop from Excel); Have a title and other relevant, helpful labels; Provide a written explanation of the anomaly found (with reference to the visualization provided), clearly explaining why/how it relates to the 'existence' of accounts receivable at Molly Mart.