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Describe the audit procedures

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Reference no: EM132549964

Question - Consider each of the following material independent situations:

You are auditing the sales and trade debtors of Eastern Block Limited (EB). All of EB's customers are in Eastern Europe. Due to language differences, and the current political situation in many countries, direct confirmation of debtors' balances is unlikely to give satisfactory results. You are auditing the purchases and trade creditors at FE Pty Limited (FE). One of the FE's major creditors is very slow in sending invoices for the goods delivered. Also, owing to a quality control problem a large number of goods supplied to FE have been deemed faulty and have had to be returned with a request for credit.

Required -

a) Identify key assertion(s) at risk in relation to the balances described in each of the situations above.

b) Describe the audit procedures you would perform in order to gather sufficient, appropriate audit evidence on each of these assertions.

Reference no: EM132549964

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