Audit, Assurance and Compliance - Accounting Assignment Help

Assignment Task

Instructions:
All questions must be answered by using the answer boxes provided in this paper.
Completed answers must be submitted to Blackboard by the published due date and time. Submission instructions are at the end of this paper.
Purpose:This assessment consists of three (3) questions and is designed to assess your level of knowledge of the key topics covered in this unit

Question 
You are the audit senior on the audit of Just Shoes Pty Limited, a large manufacturer of shoes. Just Shoes Pty Limited’s main market lies with 20to 25 year olds.
This is the first year in which your firm has performed the audit. As part of the planning work, you have performed analytical procedures on an annualised basis and compared the results to industry averages and last year’s audited financial information. The results are given below:
Industry average Just Shoes Pty Limited
Ratio 20X7 20X6 20X7 20X6
1 Current ratio 2.84 3.27 1.89 2.24
2 Receivables turnover ratio 4.9 4.6 6.3 7.0
3 Inventory turnover ratio 3.7 3.8 5.0 5.5
Required:
Explain the general meaning of each of the above ratios, discuss the conclusions that you can draw about Just Shoes’s financial position and identify potential audit risks to be investigated.


Question 
Leeanne Harris is the director of Quick Clean Pty Ltd, a family business that provides cleaning services. As Leeanne is interested in purchasing some new cleaning equipment for her business, she has approached a bank for finance. The bank has requested that Leeanne provide an audited financial report to assist them in considering her loan request. Leeanne has approached your firm for this service and you have been allocated the task of auditing Quick Clean for the year ended 30 June 2018. You have undertaken a preliminary review of the business and determined that a substantive testing approach would be appropriate. You are now preparing an audit program for the revenue cycle.
The following information has been obtained from your review:
Leeanne usually works 60 hours a week. Part of this time is spent travelling between clients and is not charged to the clients. The remaining time is charged at $50 per hour, regardless of the task undertaken.
Customers typically pay Leeanne in cash for the work undertaken, except for a small number of regular small-business customers. Leeanne allows these customers to pay on account by bank transfer on a monthly basis.
Leeanne supplies each cash customer with a written receipt, prepared manually from a receipt book purchased at the local newsagency. The book contains pre-numbered blank receipts, which are completed in duplicate.
Required:
For each of the assertions of accuracy, completeness and occurrence, identify a procedure you could use to audit Quick Clean’s revenue. 
:
Question 3 
Consider the following independent situations found during audit testing of Reservoir Potential Ltd Ltd, which has a balance date of 30 June 2017. Assume that all the situations are material.
(i)Recent industrial action has seen trade unions win a pay increase of 4% for all their members. Under the terms of the agreement, the pay increase will be backdated to 1 January 20X7. Management have agreed to the pay increase, however, they have not made any adjustments to the 30 June 20X7 financial report.
(ii)A large order from an overseas supplier was shipped FOB (free on board) from its port of origin on 1 June 20X7. The order arrived on 20 July 20X7. The purchase is not reflected in the 30 June 20X7 financial report.
(iii)The draft chairman’s report to go with the financial report states that the profits of a particular segment of the company’s operations increased by 70% during the period. On checking the figures, you found profits increased by 

This Accounting Assignment has been solved by our Accounting Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.
    
Be it a used or new solution, the quality of the work submitted by our assignment Experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.