PROBLEM 4 - Substantive Testing and CAATS (8 Marks Total) You are performing the 20x6 financial report audit of Atwood Pty Ltd. Inventory is a material account balance, with a total value of $2,258,889 recorded on the Balance Sheet at 30 June 20x6. Set out below is a list of the contents of Atwood Pty Ltd's inventory master file from their accounting system: Field No. Field Name 1 Stock code Item location 2 3 Product description 4 Quantity on hand 5 Unit cost 6 Extended value (total value on hand) 7 Date of last sale 8 Last sales price REQUIRED: Use the above information to answer question 8 below (note: you do not need to refer to the above information when answering questions 9 and 10). Q8: With reference to the above fields, describe three different tasks that could be undertaken using generalised audit software (i.e. Computer Assisted Audit Techniques or CAATS) that would be helpful in the audit of inventory. (3 marks) (Please enter your answer into column 2 of the template provided) 7 A B I e = ! Task CAAT No. #1 #2 #3 Q9: Which two assertions are generally most important when testing the accounts receivable account balance, and why? (2 marks) (Please enter your response in columns 2 and 3 of the template below) 1 A B I II! III ! Number Assertion Explanation #1 #2 # Q10: For each assertion you described in Q9 above, describe one key substantive test you could perform that would provide evidence for that assertion (3 marks) (Please enter your answer in column 2 of the template below) 1 A B 1 !!!! ! * Assertion key substantive test #1 #2 PROBLEM 4 - Substantive Testing and CAATS (8 Marks Total) You are performing the 20x6 financial report audit of Atwood Pty Ltd. Inventory is a material account balance, with a total value of $2,258,889 recorded on the Balance Sheet at 30 June 20x6. Set out below is a list of the contents of Atwood Pty Ltd's inventory master file from their accounting system: Field No. Field Name 1 Stock code Item location 2 3 Product description 4 Quantity on hand 5 Unit cost 6 Extended value (total value on hand) 7 Date of last sale 8 Last sales price REQUIRED: Use the above information to answer question 8 below (note: you do not need to refer to the above information when answering questions 9 and 10). Q8: With reference to the above fields, describe three different tasks that could be undertaken using generalised audit software (i.e. Computer Assisted Audit Techniques or CAATS) that would be helpful in the audit of inventory. (3 marks) (Please enter your answer into column 2 of the template provided) 7 A B I e = ! Task CAAT No. #1 #2 #3 Q9: Which two assertions are generally most important when testing the accounts receivable account balance, and why? (2 marks) (Please enter your response in columns 2 and 3 of the template below) 1 A B I II! III ! Number Assertion Explanation #1 #2 # Q10: For each assertion you described in Q9 above, describe one key substantive test you could perform that would provide evidence for that assertion (3 marks) (Please enter your answer in column 2 of the template below) 1 A B 1 !!!! ! * Assertion key substantive test #1 #2