Tiêu đề AUDIT BRIDGE TEST 4 ANS (1).pdf ✅

DHEERA TEST SERIES [4] 4. Scrutinize the analysis and identify those debtors which appear doubtful; discuss with management about reasons as to why these debtors are not included in the provision for bad debts. Perform further testing where any disputes exist. 5. He should check if provisions are made at appropriate rates considering recoverability of amounts due. 6. Prepare schedule of movements of bad debts – Provision accounts and debts written off and compare the proportion of bad debt expense to sales for the current year in comparison to prior years to see if the current expense appears reasonable. 7. Check that write-offs of the receivable balances have been authority appropriate approved by an appropriate authority i.e. the Board of Directors in case of a company. Award marks only if all points the highlighted technical points are written correctly for each question. No marks for generic or Vague content. COMMON PITFALLS: Students writing about what is “doubtful debt” or what “provision” means — instead of audit procedures Students not writing that auditor should ask management why doubtful accounts are excluded from provision Students Ignoring the Decommissioning Cost Mistake → Only writing about purchase price or transport/install costs and ignoring the dismantling cost of the old plant. Answer No 3: The statutory auditor of Ginni Ltd. should perform the following audit procedures to verify if the company has valid legal ownership rights over the inventories recorded in the balance sheet as on March 31st, 2024. 1. Vouch recorded purchases to underlying documentation (purchase requisition, purchase order, receiving report, vendor invoice and cancelled cheque or payment file). 2. Evaluate the consigned goods. 3.Examine client correspondence, sales and receivables records, purchase documents. ——> 1M ——> 1M ——> 1M ——> 0.5M Give 5 marks if any 5 points is written . Each point carries 1 mark . ——> 1M ——> 0.5M ——> 0.5M ——> 0.5M