1 CMN Ltd is a small company offering online advertising and marketing services. You are auditing their expense accounts for the year ended 30 June 2022. The owner often takes his family (wife and three kids) for a holiday when travelling on business trips to meet with clients. The expenses relating to the meetings with clients are recognised under the company’s expenses. On June 28, the owner and his family returned from a three-week trip around Australia for a holiday and to meet with potential clients. Identify and explain two key assertions at risk for the expense accounts. For each assertion, describe one substantive test of detail that you would undertake.
1 CMN Ltd is a small company offering online advertising and marketing services. You are auditing their expense accounts for the year ended 30 June 2022. The owner often takes his family (wife and three kids) for a holiday when travelling on business trips to meet with clients. The expenses relating to the meetings with clients are recognised under the company’s expenses. On June 28, the owner and his family returned from a three-week trip around Australia for a holiday and to meet with potential clients. Identify and explain two key assertions at risk for the expense accounts. For each assertion, describe one substantive test of detail that you would undertake.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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CMN Ltd is a small company offering online advertising and marketing services. You are auditing their expense accounts for the year ended 30 June 2022. The owner often takes his family (wife and three kids) for a holiday when travelling on business trips to meet with clients. The expenses relating to the meetings with clients are recognised under the company’s expenses. On June 28, the owner and his family returned from a three-week trip around Australia for a holiday and to meet with potential clients.
Identify and explain two key assertions at risk for the expense accounts.
For each assertion, describe one substantive test of detail that you would undertake.
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