SOLUTION! AUDITING & ASSURANCE M/C:1. Which of the following audit activities is undertaken at the

Business & Finance

The following information applies to questions 4 and 5.The following treemap visualisation represents total sales of your client, GJ Ltd’s (GJ’s) inventory bycategory and product lines for the financial year ending 30 June 2018.Women’s wearSportswearMinnki PalsiiLe Baby DressFeiss wearTennis suitYe shoesT-SJumping Jack DressMen’s wearSamba socksBowtie | O-Man4. Based on the above visualisation, which of the following would you be LEAST concerned with inthe audit of GJ?a) The risk that GJ offers a product line that is too narrow for the company to be competitive.b) The risk that GI’s men’s wear line is potentially overstated.c) The risk that sales of the Minnki Palsii line is potentially overstated.d) The risk that that T-S product line is obsolete.5. Which of the following would be the LEAST appropriate procedure to undertake in testing salesof the Minnki Palsii product line?a) Select a sample of Minnki Palsii sales to verify that appropriate prices were used by referenceto the authorised price list as of the date of each sale.b) Review forward orders on Minnki Palsii for which payments have been received but thathave yet to be delivered to customers and ensure that they are excluded from sales.c) Physically inspect a sample of Minnki Palsii at each location where GJ stores the product lineand verify the same number of items are recorded in the company’s inventory records.d) Select a sample of Minnki Palsii sales and match to shipping documents to ensure that theappropriate quantities of goods were recorded for each sale.

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SOLUTION! AUDITING & ASSURANCE M/C:1. Which of the following audit activities is undertaken at the
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