Duopoulo Ltd provides credit for consumers purchasing from major retail stores, and has been operating for three years. As part of your audit planning for the audit for the year ended 30 June 2020, you have performed an analytical review of the operations and found the following: 31 March 2020 30h June 2019 30h June 2018 $000 Account $000 $000 Gross finance receivables - current 110,000 88,000 55,000 Gross finance receivables - non-current 280,000 160,000 110,000 Unearned income 30,000 24,800 16,500 Allowance for doubtful debts Bad debts expense 1,100 1,000 1,000 100 100 100 Required: a. Identify two unusual trends/relationships, and explain what each could indicate. b. For each trend listed in (a), identify the key general ledger account impacted. c. For each trend listed in (a), identify the key assertion at risk.

Duopoulo Ltd provides credit for consumers purchasing from major retail stores, and has been operating for three years. As part of your audit planning for the audit for the year ended 30 June 2020, you have performed an analytical review of the operations and found the following: 31 March 2020 30h June 2019 30h June 2018 $000 Account $000 $000 Gross finance receivables - current 110,000 88,000 55,000 Gross finance receivables - non-current 280,000 160,000 110,000 Unearned income 30,000 24,800 16,500 Allowance for doubtful debts Bad debts expense 1,100 1,000 1,000 100 100 100 Required: a. Identify two unusual trends/relationships, and explain what each could indicate. b. For each trend listed in (a), identify the key general ledger account impacted. c. For each trend listed in (a), identify the key assertion at risk.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 2.6P: Financial statements Alpine Realty. Inc., organized July 1. 20Y8, is operated by Angela Griffin. How...

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