Company: Abacus Storage King

1. Objectives, strategies and related business risks

• Identify the objectives or strategies (any plan to develop new products or services, or to expand the business locations, use of information technology)
• Identify the related business risks the risk that that an entity's business objectives will not be attained as a result of external and internal forces brought to bear on an entity).
• Discuss the potential impact of those identified on the future audit work

2. Accounting policy

Main accounting policies may include:

• Policies regarding property, plant & equipment (PPE) (e.g. cost or revaluation model).
• Policies regarding inventory (perpetual or periodic, FIFO, average etc.).
• Policies regarding account receivables.
• Policies regarding financial instruments.
• Policies regarding intangible assets.
• Policies regarding revenue recognition.

3. Nature of the entity

• Its operations (i.e. area or types of products or services).
• Major customers.
• Is the client heavily dependent on any specific customers or class of customers.
• Major suppliers.
• Ownership's structure and details about corporate governance to some extent (Board of Directors, audit committee, etc.).
• Operational structure (any branches within and outside Australia, location of warehouses, etc.).
• Capital investment activities, such as new or planned acquisitions or divestitures, investments in securities and loans, elc.
• Financing, such as major debt, beneficial owners, derivatives etc.

Answer rating: 100% (QA)

Abacus Storage King Information for Audit Considerations 1 Objectives Strategies and Business Risks Objectives and Strategies Owning and managing a selfstorage portfolio Abacus Storage King aims to ac... View the full answer