Ben & Cat is a company which work in the hotelry industry. The company year end is 31 October 2018. You are an audit manager at KLONE, an audit organization, and you are now arranging the audit of Ben & Cat for the first time because Ben & Cat is a new customer to your business. Last week, you joined a planning meeting with the audit engagement team and finance director. Explain the purpose of risk assessment procedures and what are the different risks that Long Beach Co. Ltd, a tourism sector could faced in the covid-19 situation.

Ben & Cat is a company which work in the hotelry industry. The company year end is 31 October 2018. You are an audit manager at KLONE, an audit organization, and you are now arranging the audit of Ben & Cat for the first time because Ben & Cat is a new customer to your business. Last week, you joined a planning meeting with the audit engagement team and finance director. Explain the purpose of risk assessment procedures and what are the different risks that Long Beach Co. Ltd, a tourism sector could faced in the covid-19 situation.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.6C

See similar textbooks

Similar questions

Ginnian and Fitch, a regional accounting firm, performs yearly audits on a number of different for-profit and not-for-profit entities. Two years ago, Luisa Mellina, Ginnians partner in charge of operations, became concerned about the amount of audit time required by not-for-profit entities. As a result, she instituted a series of training programs focusing on the auditing of not-forprofit entities. Now, she would like to see if the training seemed to work. So, she ran a multiple regression on 22 months of data for Ginnian for three variables: the total monthly cost of audit professional time, the number of not-for-profit audits, and the hours of training in the audit of not-for-profit entities. The following printout was obtained: Required: 1. Write out the cost equation for Ginnians audit professional time. 2. If Ginnian expects to have 9 audits of not-for-profits next month and expects that audit professionals will have a total of 130 hours of not-for-profit training, what is the anticipated cost of professional time? 3. Are the hours spent auditing not-for-profit entities positively or negatively correlated with audit professional costs? Is percentage of experienced team members positively or negatively correlated with audit professional cost? 4. What does R2 mean in this equation? Overall, what is your evaluation of the cost equation that was developed for the cost of audit professionals?
Ben & Cat is a company which work in the hotelry industry. The company year end is 31 October 2018. You are an audit manager at KLONE, an audit organization, and you are now arranging the audit of Ben & Cat for the first time because Ben & Cat is a new customer to your business. Last week, you joined a planning meeting with the audit engagement team and finance director. Outline the 5 sources of audit evidence the auditor can use as part of riskassessment procedures.
You are the audit senior responsible for the audit of Sampson Limited. You are currently planning the audit for the year ended 31 December 2019. During your initial planning meeting held with the financial controller, he told you of the following changes in the company’s operations. (i) Due to the financial controller’s workload, the company has employed atreasurer. The financial controller is excited about the appointment because in the two months that the treasurer has been with the company he has realized a small profit for the company through foreign-exchange transactions in dollars. (ii) Sampson has planned to close an inefficient factory in the northern partof the country before the end of 2019. It is expected that the redeploymentand disposal of the factory’s assets will not be completed until the end ofthe following year. However, the financial controller is confident that hewill be able to determine reasonably accurate closure provisions. (iii) To help achieve the budgeted…
You are the audit senior responsible for the audit of Sampson Limited. You are currently planning the audit for the year ended 31 December 2019. During your initial planning meeting held with the financial controller, he told you of the following changes in the company’s operations. Due to the financial controller’s workload, the company has employed a treasurer. The financial controller is excited about the appointment because in the two months that the treasurer has been with the company, he has realized a small profit for the company through foreign-exchange transactions in dollars. explain how the components of audit risk (inherent, control or detection risk) are affected.
You are the audit manager at KPMG & Coopers a medium-sized audit firm undertaking the audit forthe year ended 30 June 2018 of Vesta Tech Ltd, an electronic component manufacturer located inSydney. During the planning stage of the audit you discovered that one of Vesta Tech Ltd’s majorsuppliers went bankrupt one month ago, causing major product shortages. To overcome the problem,Jonathon Marshall, the husband of the finance director, Nimat Marshall provided electroniccomponents to Vesta Tech Ltd through his private company. There is no formal agreement in placewith Jonathon Marshall, however, the goods are being provided at competitive prices. You areconcerned about the electronic components that Jonathon Marshall’s company is supplying, becausehis products are new to the market and you have heard some of Vesta Tech Ltd’s staff complainingthat they are of poor quality.The board has informed you that although sales have been strong this year, Vesta Tech Ltd hassuffered significant…
You are the audit manager at KPMG & Coopers a medium-sized audit firm undertaking the audit forthe year ended 30 June 2018 of Vesta Tech Ltd, an electronic component manufacturer located inSydney. During the planning stage of the audit you discovered that one of Vesta Tech Ltd’s majorsuppliers went bankrupt one month ago, causing major product shortages. To overcome the problem,Jonathon Marshall, the husband of the finance director, Nimat Marshall provided electroniccomponents to Vesta Tech Ltd through his private company. There is no formal agreement in placewith Jonathon Marshall, however, the goods are being provided at competitive prices. You areconcerned about the electronic components that Jonathon Marshall’s company is supplying, becausehis products are new to the market and you have heard some of Vesta Tech Ltd’s staff complainingthat they are of poor quality.The board has informed you that although sales have been strong this year, Vesta Tech Ltd hassuffered significant…
You are the audit manager at KPMG & Coopers a medium-sized audit firm undertaking the audit forthe year ended 30 June 2018 of Vesta Tech Ltd, an electronic component manufacturer located inSydney. During the planning stage of the audit you discovered that one of Vesta Tech Ltd’s majorsuppliers went bankrupt one month ago, causing major product shortages. To overcome the problem,Jonathon Marshall, the husband of the finance director, Nimat Marshall provided electroniccomponents to Vesta Tech Ltd through his private company. There is no formal agreement in placewith Jonathon Marshall, however, the goods are being provided at competitive prices. You areconcerned about the electronic components that Jonathon Marshall’s company is supplying, becausehis products are new to the market and you have heard some of Vesta Tech Ltd’s staff complainingthat they are of poor quality.The board has informed you that although sales have been strong this year, Vesta Tech Ltd hassuffered significant…
You are the audit senior responsible for the audit of Sampson Limited. You are currently planning theaudit for the year ended 31 December 20X7. During your initial planning meeting held with thefinancial controller, he told you of the following changes in the company’s operations.(i) Due to the financial controller’s workload, the company has employed a treasurer. The financialcontroller is excited about the appointment because in the two months that the treasurer hasbeen with the company he has realised a small profit for the company through foreign-exchangetransactions in yen.(ii) Sampson has planned to close an inefficient factory in country New South Wales before the endof 20X7. It is expected that the redeployment and disposal of the factory’s assets will not becompleted until the end of the following year. However, the financial controller is confident thathe will be able to determine reasonably accurate closure provisions.(iii) To help achieve the budgeted sales for the year,…
You are the audit senior responsible for the audit of Sampson Limited. You are currently planning theaudit for the year ended 31 December 20X7. During your initial planning meeting held with thefinancial controller, he told you of the following changes in the company’s operations.(i) Due to the financial controller’s workload, the company has employed a treasurer. The financialcontroller is excited about the appointment because in the two months that the treasurer hasbeen with the company he has realised a small profit for the company through foreign-exchangetransactions in yen.(ii) Sampson has planned to close an inefficient factory in country New South Wales before the endof 20X7. It is expected that the redeployment and disposal of the factory’s assets will not becompleted until the end of the following year. However, the financial controller is confident thathe will be able to determine reasonably accurate closure provisions.(iii) To help achieve the budgeted sales for the year,…
You are the audit senior responsible for the audit of Sampson Limited. You are currently planning theaudit for the year ended 31 December 20X7. During your initial planning meeting held with thefinancial controller, he told you of the following changes in the company’s operations.(i) Due to the financial controller’s workload, the company has employed a treasurer. The financialcontroller is excited about the appointment because in the two months that the treasurer hasbeen with the company he has realised a small profit for the company through foreign-exchangetransactions in yen.(ii) Sampson has planned to close an inefficient factory in country New South Wales before the endof 20X7. It is expected that the redeployment and disposal of the factory’s assets will not becompleted until the end of the following year. However, the financial controller is confidentthat he will be able to determine reasonably accurate closure provisions.(iii) To help achieve the budgeted sales for the year,…
The Cosy Kitchen is a regional chain of coffee shops and bistros that offers customers wholesome, good quality food and drink. It also has function rooms that are available for private events and meetings. Its year end is 30 June 2021. You are the audit manager for Lawler and Co and this is the first year that you have been the auditors. You are currently planning the annual audit for The Cosy Kitchen. There have been a number of significant issues that have been identified during the planning process which are all related to the Covid 19 pandemic. The Cosy Kitchen incurred significant capital expenditure during the year on updating the chain of properties due to the Covid 19 pandemic. All of this cost has been capitalized. The finance director has proposed that this should be depreciated over 5 years using the straight-line method. During a recent lockdown, The Cosy Kitchen were unable to fully open to customers and could only offer a limited takeaway service. They have been left with…
You are the audit senior responsible for the audit of Sampson Limited. You are currently planning the audit for the year ended 31 December 20X7. During your initial planning meeting held with the financial controller, he told you of the following changes in the company’s operations. (i)Due to the financial controller’s workload, the company has employed a treasurer. The financial controller is excited about the appointment because in the two months that the treasurer has been with the company he has realized a small profit for the company through foreign-exchange transactions in yen. (ii)Sampson has planned to close an inefficient factory in country New South Wales before the end of 20X7. It is expected that the redeployment and disposal of the factory’s assets will not be completed until the end of the following year. However, the financial controller is confident that he will be able to determine reasonably accurate closure provisions. (iii)To help achieve the budgeted sales for the…