Reference no: EM132690833

The following treemap visualisation represents total sales of your client, GJ Ltd's (GJ's) inventory by category and product lines for the financial year ending 30 June 2018.

Women's wear             Minnki Palsii           Le Baby Dress                Jumping Jack Dress

Sportswear                   Feiss wear              Tennis suit                         Ye shoes

T-S

Men's wear                Samba socks                   Bowtie                                O-Man

Problem 1: Based on the above visualisation, which of the following would you be LEAST concerned with in the audit of GJ?

a) The risk that GJ offers a product line that is too narrow for the company to be competitive.

b) The risk that GJ's men's wear line is potentially overstated.

c) The risk that sales of the Minnki Palsii line is potentially overstated.

d) The risk that that T-S product line is obsolete.

Problem 2: Which of the following would be the LEAST appropriate procedure to undertake in testing sales of the Minnki Palsii product line?

a) Select a sample of Minnki Palsii sales to verify that appropriate prices were used by reference to the authorised price list as of the date of each sale.

b) Review forward orders on Minnki Palsii for which payments have been received but that have yet to be delivered to customers and ensure that they are excluded from sales.

c) Physically inspect a sample of Minnki Palsii at each location where GJ stores the product line and verify the same number of items are recorded in the company's inventory records.

d) Select a sample of Minnki Palsii sales and match to shipping documents to ensure that the appropriate quantities of goods were recorded for each sale.