Background information Putt and Play is a theme park designed for children age ranges from 3 years to 12 years old. Customers pay a fixed fee to enter the park, where they can participate in a variety of activities such as riding roller-coasters, bumper cars, mello-go-round, playing on slides and purchasing themed souvenirs from gift shops. The park is open weekly from Tuesdays to Sundays and has been in operation for the last ten years. It is located in Kingston with ample parking for patrons and efficient, reliable security for patrons. The security officer is to ensure customers can feel safe while they are in the park and not to be worrying about their cars be broken into or stolen. Putt and Play is now very successful; customer numbers are increasing at approximately 15% each year. Cash sales All ticket sales are recorded on a computer showing the amount of each sale and the number of tickets issued. This information is transferred electronically to the accounts office. Cash is collected regularly from each ticket office by two security guards. The cash is then counted by two accounting clerks and banked on a daily basis. The total cash from each ticket office is agreed to the sales information that has been transferred from each office. Total cash received is then recorded in the cash book and then the general ledger. Credit card sales Payments by credit cards are authorised online as the customers purchase their tickets. Computers in each ticket office record the sales information which is transferred electronically to the accounts office. Credit card sales are recorded for each credit card company in a receivables ledger. When payment is received from the credit card companies, the accounting clerks agree the total sales values to the amounts received from the credit card companies, less the      commission payable to those companies. The receivables ledger is updated with the payments     received.   You are now commencing the planning of the annual audit of Putt and Play. The date is March 3,2020 and Putt and Play ’s year end is 31 March 2020. Required: The auditor partner has met with the team assigned to the audit to develop the plan for the audit. Explain the importance of planning the audit. ISA 300 Planning an Audit of Financial Statements provides guidance to assist auditors in planning an audit. What are the benefits of planning the audit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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 Background information

Putt and Play is a theme park designed for children age ranges from 3 years to 12 years old. Customers pay a fixed fee to enter the park, where they can participate in a variety of activities such as riding roller-coasters, bumper cars, mello-go-round, playing on slides and purchasing themed souvenirs from gift shops.

The park is open weekly from Tuesdays to Sundays and has been in operation for the last ten years. It is located in Kingston with ample parking for patrons and efficient, reliable security for patrons. The security officer is to ensure customers can feel safe while they are in the park and not to be worrying about their cars be broken into or stolen.

Putt and Play is now very successful; customer numbers are increasing at approximately 15% each year.

Cash sales

  1. All ticket sales are recorded on a computer showing the amount of each sale and the number
    of tickets issued. This information is transferred electronically to the accounts office.
  2. Cash is collected regularly from each ticket office by two security guards. The cash is then
    counted by two accounting clerks and banked on a daily basis.
  3. The total cash from each ticket office is agreed to the sales information that has been
    transferred from each office.
  4. Total cash received is then recorded in the cash book and then the general ledger.

Credit card sales

  1. Payments by credit cards are authorised online as the customers purchase their tickets.
  2. Computers in each ticket office record the sales information which is transferred electronically
    to the accounts office.
  3. Credit card sales are recorded for each credit card company in a receivables ledger.
  4. When payment is received from the credit card companies, the accounting clerks agree the
    total sales values to the amounts received from the credit card companies, less the
         commission payable to those companies. The receivables ledger is updated with the payments
        received.  

You are now commencing the planning of the annual audit of Putt and Play. The date is
March 3,2020 and Putt and Play ’s year end is 31 March 2020.

Required:

  • The auditor partner has met with the team assigned to the audit to develop the plan for the audit. Explain the importance of planning the audit.
  • ISA 300 Planning an Audit of Financial Statements provides guidance to assist auditors in planning an audit. What are the benefits of planning the audit
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