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Consider each of the following independent situations:
(a) City Ltd, a property developer, has several major projects in progress in Brisbane's central business district. Due to a downturn in the commercial property sector and an abundance of city office space, no buyers have been secured for the projects.
(b) Your client, Web Ltd, has recently purchased new computer software, which allows extensive management financial analysis and improved quality management reporting.
(c) During the year Beauty Pty Ltd, a manufacturer of cosmetics and skincare products, established an overseas branch operating as a sales outlet. Inventory has been transferred from Australia to the new branch to reduce lead times to existing customers and to provide inventory for samples as part of an increased marketing effort.
Required
For each situation, identify the main audit planning issues that need to be addressed in the planning documents
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What is the amount of the bad debt adjusting entry if Helix uses a percentage-of-receivables basis (at 10%)
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