If you are an external auditor, you are currently panning the 2011 audit of X Limited. You've been given that:
New product A constitutes 2 percent of total sales;
New product B constitutes 7 percent of total sales;
products sold to government constitutes 50 percents;
other products constitutes 41 percent of total sales.
As an auditor, what is(are) the key audit objective(s) relate to the given events?(eg. occurrence for
sales; completeness...)
What is the risk of material misstatement?
What is the Specific audit procedure that you should take?