Exam (elaborations)
AUE3701 ASSIGNMENT 2 S1&S2 YEAR 2021
- Course
- Institution
Exam (elaborations) AUE3701 (AUE3701)
[Show more]
Seller
Follow
tralphmasiwa52
Reviews received
Content preview
AUE3701ASSIGNMENT 02
S1&S2
YEAR 2021
, AUE3701 Assignment 2 (2021)
1.
(a) Risk indicators (b) Description of risks of material misstatement at the
financial statement level
Conducting business The AFS may be materially misstated due to error as Cellular
internationally (most of conducts business internationally and the accounting
Cellular’s products are treatment for forex transactions is complex
sourced from China)
Related parties (Cellular is The AFS may be materially misstated due to error or
the parent company of App manipulation as the disclosure of related party relationships
Connect and Protect It) and transactions might be incorrect/incomplete in the financial
statements or might not be at arm’s length
Cellular group companies The AFS may be materially misstated as the entity might be
have to adhere to liable for legal damages for non-compliance resulting in
regulations (the Consumer negative publicity for the entity. This might lead to the going
Protection Act 68 of 2009 concern assumption not being properly accounted for and/or
and Competition Act 89 of disclosed.
1998)
Third party reliance The AFS may be materially misstated due to manipulation as
(Audited financial directors might engage in fraudulent financial reporting
statements to be used for (overstatement of assets and profit and understatement of
supplier renewal application) liabilities and expenses) to ensure that the Cellular’s licence is
renewed
Going concern issues due to : The AFS may be materially misstated as the going concern
- Licence contributes 70% of assumption might not be properly accounted for and/or
annual turnover and to be disclosed due to the possible non-renewal of the licence.
renewed withina month
after 31 March 2021 year-
end
Tight audit deadline The AFS may be materially misstated due to error as the
financial results prepared by the management of Cellular might
be incomplete due to time pressure or they may not have
sufficient time to identify, account for and disclose subsequent
events.
CEO is also 100% shareholder
of Cellular The AFS may be materially misstated due to manipulation
as management might engage in fraudulent financial
reporting by inflating the performance and position (eg
overstatement of revenue) of the entity or by reflecting a
poor performance and position (eg overstatement of
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller tralphmasiwa52. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.47. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
52355 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now