Identify and explain the assertions at risk

Reference no: EM132846979

Question - Michael Ltd is currently auditing the financial report of Jackson Ltd for the year ending 30 June 2021.

You are the audit manager of this audit, and in your recent conversation with Jane Doyle, the audit partner, you have the learnt the following about Jackson Ltd:

Anna, another audit team member, is concerned about the maintenance undertaken on most factory machines during the financial year. During the review of the machine account, she has identified several transactions labelled as "scheduled maintenance". Upon further examination, she also noticed that these transactions occur every two months. Anna is concerned because she has never seen such transactions in the machine account before.

REQUIRED -

A) Identify and explain the assertions at risk in the above scenario.

B) Write a substantive procedure to verify the assertion(s) identified in (A) above.

Reference no: EM132846979

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