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You are currently part of the audit team that is conducting the audit of Motorcycles Lid (Easy Rider) for the year ended 30 June 2016. Easy Rider is a m of customised luxury high performance motorcycles. Your audit manager has a oversee the audit of Easy Rider's inventory account balance, which is highly me Rider maintains details of stock quantities on its computer system. These stop are updated from goods received notes and sales invoices. Due to the natur product, Easy Rider holds a large number of highly specialised component part there is no secondary market. Easy Rider conducts a 'wall-to-wall' count whereby all operations cease and they count all inventory in a single stocktake.
Required:
Question (a) Identify the two key assertions at inherent risk of misstatement for E inventory, and explain the reasons why.
Question (b) Outline an audit program of substantive testing to be conducted on th account of Easy Rider.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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