Q1 Detailed Control Planning (Mitigating controls) 1.1 Account at risk: InventoryKey...

Question

Q1
    Detailed Control Planning (Mitigating controls)
    1.1
    Account at risk: Inventory
Key assertion: Accuracy, Valuation & Allocation

    recognize two controls that will deal with the key allegation
    1.2
    Account at risk: Wa
anty provision.
Key assertion: Completeness

    recognize two controls that will deal with the key allegation
    1.3
    Account at risk: Account Receivable
Key assertion: Existence

    recognize two controls that will deal with the key allegation

auditing-homework-vm24iowl.docx

Khushboo · Accepted Answer

Controls related to inventory valuation, allocation and accuracy:
The controls related to inventory are such as correct valuation of inventory as per IAS/ AAS 2 for high value and slow moving items and review cut-off of inventory. The auditor should review the accounting policy and costing methods for valuation of inventories. The delivery cost and purchase cost should be carefully examined and WIP and finished goods should be valued considering conversion costs. As an auditor, he should review and verify cut off i.e.

Q1 Detailed Control Planning (Mitigating controls) 1.1 Account at risk: Inventory Key assertion: Accuracy, Valuation & Allocation recognize two controls that will deal with the key allegation 1.2...

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