Problem 1: From your business risk analysis, identify three (3) accounts to be at significant risk. For each of the accounts you identify:
a) Outline why the account is at significant risk
b) Identify the prime audit assertion to be tested for each account
c) Describe one (1) relevant substantive audit procedure that would address the assertion identified in b) above
Problem 2:
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Consolidated Entity
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2014
Note r000
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2013
$'000
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Note 10: Non-Current Assets - Property, plant and equipment
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Leasehold improvements
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At cost
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57,330
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44,162
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Less accumulated depreciation
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(21,032)
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(16,583)
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36,298
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27,579
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Plant and equipment'
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At cost
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121,157
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107,305
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Less accumulated depreciation
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(58,717)
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(48,146)
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62,440
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59,159
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Total Property, Plant and Equipment
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98,738
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86,738
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Plant & equipment includes fixtures, fittings and motor vehicles as well as $3,911,300 (FY2013: $4,069,993) of work in progress costs. The 29 June 2014 work in progress costs include the WA Distribution Centre project $2,147,624 and new store Mouts and shelving $1,608,616.
Movements in Carrying Amounts
Movements in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial period are as follows: