1. You are enganged to audit Skippy XYZ Pte. Ltd.

When you want to check the fixed assets, the

Company didn’t give you access to check perform physical examination and the amount of the
fixed assets is material. What audit opinion should you give as auditors ? Give explanation!
2. The Company is in capital deficiency (negative equity) amounted to Rp 3,000,000,000 and also
incurred net loss amounted to Rp 2,000,000,000. The business of the Company decline compare
to previous year. What audit opinion should you give as auditors? Give explanation!
3. Before perform audit procedures, the auditor consider to rely internal control of the Company.
Explain how to perform test of control !
4. If the auditor increased the materiality, what is the effect to the audit evidence ?
5. You are audit Celebes Pte Ltd. Below some conditions that you need to identify regarding the
inventory cycle:
- Select a sample of inventory items in the factory warehouse and trace each item to the
inventory count sheets to determine whether it has been included and whether the quantity
and description are correct.
- Trace selected quantities from the inventory list to the physical inventory to make sure that it
exists and the quantities are the same.
- Compare the quantities on hand and unit prices on this year's inventory count sheets with
those in the preceding year as a test for large differences.
- Send the confirmation letter for inventory stored in the overseas.
- Read the footnote disclosures related to the company's accounting policies for valuing
inventory obsolescence to determine whether the allowance for inventory obsolescence is
adequate.
- Test the extension of unit prices times quantity on the inventory list for a sample of inventory
items, test foot the list, and compare the total to the general ledger.
- Check Goods Receipt Note from warehouse dated December 31, 2019 and January 1, 2020
whether all inventories received as of December 31, 2019 are recorded in the system
- All types inventory has been disclosed in notes to financial statements
- All inventory disclose in the notes to financial statements is owned by the Company
- Purchases of the inventory recorded on the correct dates to verify the cost of goods sold.
- Recorded purchases of the inventory are bought from nonfictitious suppliers

a) Identify the type of audit evidence used for each audit procedure.
b) Identify the management assertion about accounts balances/classes of transaction and
events/disclosure and general balance-related audit objective or objectives satisfied by each audit
procedure.