QUESTION 1 (a) (b) Identify and explain any four financial statement assertions relevant to classes of transactions and events for the year under audit; and for each identified assertion describe a substantive procedure relevant to the audit of revenue. (2 marks) Hazogo Enterprises Co (Hazogo) manufactures and distributes fashion clothing to retail stores. Its year ends on 31" March. You are the audit manager responsible for auditing Hazogo and the year-end audit for the year ended 31st March 2019 is due to commence. The following three matters have been brought to your attention: (i) (ii) Supplier statement reconciliations Hazogo receives monthly statements from its main suppliers and although these have been retained, none have been reconciled to the payables ledger as at 31st March 2019. The engagement partner has asked the audit senior to recommend the procedures to be performed on supplier statements. Bank reconciliation During last year's audit of Hazogo's bank and cash accounts, significant cut off errors were discovered with a number of post year-end cheques being processed prior to the year end to reduce payables. The finance director has assured the audit engagement partner that this error has not occurred again this year and that the bank reconciliation has been carefully prepared. The audit engagement partner has directed the bank reconciliation to be comprehensively audited. Receivables Hazogo's receivables ledger has increased considerably during the year, where the year-end balance is TZS.230 million compared to TZS.140 million last year. The finance director of Hazogo has requested you to no carry out that a receivables circularization as a number of theircustomers complained about the inconvenience involved in responding when the exercise was carried out last year. The engagement partner has agreed to this request, and tasked you with identifying alternative procedures to confirm the existence and valuation of receivables. REQUIRED: Describe substantive procedures you would perform to obtain sufficient and appropriate audit evidence in relation to each of the above three matters. (8 marks)

QUESTION 1 (a) Identify and explain any four financial statement assertions relevant to classes of transactions and events for the year under audit; and for each identified assertion deseribe a substantive procedure relevant to the audit of revenue. ( 2 marks) (b) Hazogo Enterprises Co (Hazogo) manufactures and distributes fashion clothing to retail stores. Its year ends on 31 March. You are the audit manager responsible for auditing Hazogo and the year-end audit for the year ended 31t March 2019 is due to commence. The following three matters have been brought to your attention: (i) Supplier statement reconciliations Hazogo receives monthly statements from its main suppliers and although these have been retained, none have been reconciled to the payables ledger as at 31st March 2019 . The engagement parner has asked the audit senior to recommend the procedures to be performed on supplier statements. (ii) Bank reconciliation During last year's audit of Harogo's bank and cash accounts, significant cut off errors were discovered with a number of post year-end cheques being processed prior to the year end to reduce payables. The finance director has assured the andit engagement partner that this error has not occurred again this year and that the bank reconciliation has been carefully prepared. The audit engagement partner has directed the bank reconciliation to be comprehensively audited. (iii) Receivables Hazogo's receivables ledger has increased considerably during the year, where the year-end balance is TZS.230 million compared to TZS. 140 million last year. The finance director of Hazogo has requested you to no carry out that a receivables circularization as a number of theircustomers complained about the inconvenience involved in responding when the exercise was carried out last year. The engagement partner has agreed to this request, and tasked you with identifying alternative procedures to confirm the existence and valuation of receivables. REQUIRED: Describe substantive procedures you would perform to obtain sufficient and appropriate audit evidence in relation to each of the above three matters. (8 marks)