Question 1 Staples plc You are the audit junior on the audit of Staples plc, an...
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Question 1 Staples plc You are the audit junior on the audit of Staples plc, an entity that trades in stationery, for the year ended 31 December 20X2. As part of your audit testing of trade receivables, your audit senior has sent receivables circularisations to a sample of credit customers. The results of the receivables circularisation are detailed below, however no follow-up testing has been performed. Requirement Provide a list of specific follow-up audit tests that you would use to confirm the trade receivables balances as at the year and confirm the information from the client is accurate, noting whether a change would need to be made to the trade receivables balances if the information provided by the credit customers is found to be correct. Receivables circularisation working paper Year end: 31 December 20X2 Materiality: Customer Wardoff Ltd Scout plc 32,000 Balance per sales ledger Reply received? (Yes/No) 45,128 Yes 240,555 Yes Union Partnership 170,000 Yes Balance agreed? (Yes/No) + Comments No. Disagreement over an invoice 6578 for 23,145. Wardoff Ltd claim they never received the inventories. No. Scout plc believes it should be 10,750 due to a contra agreement. No. Union believes the amount is 25,000 due to a bank payment being made on 30 December. Iskard Corporation 34,953 No Franz and Co 5,264 Yes Yes Spinney and Son 67,457 Yes Gerrards plc 47,000 Yes No. Spinney and Son believe the balance should be 10,700 due to goods being sent for return on 31 December which had a value of 56,757. No. Gerrards plc believes the balance should be 35,000 due to a credit note 17583 for 12,000 being issued. Question 1 Staples plc You are the audit junior on the audit of Staples plc, an entity that trades in stationery, for the year ended 31 December 20X2. As part of your audit testing of trade receivables, your audit senior has sent receivables circularisations to a sample of credit customers. The results of the receivables circularisation are detailed below, however no follow-up testing has been performed. Requirement Provide a list of specific follow-up audit tests that you would use to confirm the trade receivables balances as at the year and confirm the information from the client is accurate, noting whether a change would need to be made to the trade receivables balances if the information provided by the credit customers is found to be correct. Receivables circularisation working paper Year end: 31 December 20X2 Materiality: Customer Wardoff Ltd Scout plc 32,000 Balance per sales ledger Reply received? (Yes/No) 45,128 Yes 240,555 Yes Union Partnership 170,000 Yes Balance agreed? (Yes/No) + Comments No. Disagreement over an invoice 6578 for 23,145. Wardoff Ltd claim they never received the inventories. No. Scout plc believes it should be 10,750 due to a contra agreement. No. Union believes the amount is 25,000 due to a bank payment being made on 30 December. Iskard Corporation 34,953 No Franz and Co 5,264 Yes Yes Spinney and Son 67,457 Yes Gerrards plc 47,000 Yes No. Spinney and Son believe the balance should be 10,700 due to goods being sent for return on 31 December which had a value of 56,757. No. Gerrards plc believes the balance should be 35,000 due to a credit note 17583 for 12,000 being issued.
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Auditing Assurance Services and Ethics in Australia an Integrated Approach
ISBN: 978-1442539365
9th edition
Authors: Alvin A Arens, Peter J. Best, Greg Shailer, Brenton Fiedler
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