Answer Happy

Hi, I am doing my AP2.1 -Trial Balance Analysis &
Risks Worksheet - Finished all the analysis columns in
this worksheet and add materiality figures (when finished).
Determine the type and level of audit testing for each account in
the SKY9 trial balance. I just calculated Variance and %movement
from last year, I really need help about the last two columns which
are Assess the Inherent Risk (IR) & Control Risk (CR)
for each account balance and Use your risk
assessment (in column H) and other information across worksheets to
determine the type and amount of audit testing for each account
balance. Can anyone please help me?
This is group assignment and my main part is AP2.1 so other
parts such as AP2.2, 2.3, 2.4 are assigned to other members in my
group so you don't have to use its information for the part
(AP2.1)
These are other information that you can use to complete those 2
columns:
A B C D E F G H 9 ANALYSIS Audited Trial Balance for Year Ended June 2021 10 Trial Balance Year ended June 30 2022 Assess the Inherent Risk (IR) & Control Use your risk assessment (in column H) and Risk (CR) for other information across worksheets to each account determine the type and amount of audit balance testing for each account balance YTD Debit YTD Credit YTD Debit YTD Credit Variance % movement from last year % 1,623,841 1,955,247 941 -331,406 1,159 2,100 -17% 123% 14,245 196% 81% 101% 93% 11 Accounts 12 13 Profit and Loss 14 Revenue 15 Revenue from contracts with customers 16 Other revenue 17 Expenses 18 Changes in inventory 19 Purchase of goods 20 Employee and contractor costs directly on-charged 21 Other cost of sales on services 22 Internal employee and contractor costs 23 Telecommunications 24 Rent 25 Travel 26 Professional fees 27 Depreciation and amortisation 28 Finance costs 29 Other 30 Income Tax Expense/benefit Net Profit (Loss) 31 32 7,286 1,593,258 74,629 85,328 138,346 2,287 2,033 180 1,028 5,172 1,444 8,254 11,540 97% 14,245 1,295,148 75,484 79,475 133,821 2,259 2,933 1,460 858 1,295,148 75,484 79,475 133,821 2,259 2,933 1,4601 858 4,905 1,146 8,631 10,338 99% 144% 811% 83% 95% 79% 105% 4,905 1,146 8,631 10.338 90% 25,4031 23,728 23,728 93% 204,323 415,991 3,355 13,872 4,018 255,147 256,247 4,856 21,158 4,462 255,147 256,247 4,856 21,1581 125% 62% 145% 153% 4,462 111% Current Assets 33 34 Cash and Equivalents 35 Trade and Other receivables 36 Contract assets 37 Inventories 38 Other 39 40 Non current assets 41 Trade and other receivables 42 Property and equipment 1 ... AP2-AR,TA, Materiality & Risk WP Ready Accessibility: Investigate 3,686 4,495 3,686 4,495 158% 133% 2,336 3,375 AP2.1 - TB Analysis & Risks WS - AP2.2-Trend Analysis WS AP2.3-Analytical Review WS AP2.4 Materiality Calc W: ... + Type here to search o . a
А B u D E ד F G H 204,323 415,991 3,355 13,872 4018 255,147 256,247 4,856 21,158 4,462 255, 147 256,247 4.856 125% 62% 145% 153% 111% 21.158 4,462 2,336 3,686 158% 3,375 25,698 5,898 15,959 3,686 4,495 17,533 4,632 15,222 4,495 17,533 4,632 15,222 133% 68% 79% 95% Current Assets 33 34 Cash and Equivalents 35 Trade and Other receivables 36 Contract assets 37 Inventories 38 Other 39 40 Non current assets 41 Trade and other receivables 42 Property and equipment 43 Right-of-use assets 44 Deferred tax assets 45 Intangible assets 46 Current liabilities 47 Trade and other Payables 48 Contract liabilities 49 Lease liabilities 50 Current tax liabilities 51 Provisions 52 53 Non current liabilities 54 Trade and other payables 55 Lease liabilities 56 Provisions 57 58 Equity 59 Contributed equity 60 Share-based payments reserve 61 Foreign currency translation reserve 62 Retained earnings 63 Balance Sheet item TOTALS 64 65 560,865 39,312 2,761 1,327 6,095 464,911 36,455 2,396 4,652 6,025 -95,9541 -2,857 -365 3,325 -70 -17% -7% -13% 251% - 1% ) 614 24,105 3,441 1,415 15,857 3,0171 801 -8,248 -424 130% -34% -12% 0 8,278 1,825 -1,219 8,278 606 202 43,151 2,227,151 0% -67% 31% 657 202 -3,708 -8% 46,859 2,651,670 2,651,670 2,227,624
F G H 1 2 Client Name SKY9 Group Ltd 3 Engagement Title SKY9 4 Period 30.6.22 5 Work Paper ACM1.1 CLIENT MEETING NOTES Preparer Tayla Bacon Date Prepared 14-Jul-22 Reviewer Date Reviewed 15-Jul-22 Mabel Dang Dang, Hock, and Armitage Attendees: Mabel Dang (Audit Partner), Tayla Bacon (Audit Manager), Michael Zhang (SKY9 CEO), Tommy Firth (SKY9 CFO) 6 7 Meeting Date: Operating environment and risks: In the 2022 financial year the board reviewed its skills mix. It gave consideration to succession planning but the search for new directors to progress the board succession plan was paused temporarily due to COVID-19 pandemic restrictions. The risk management system addresses the material business risks including the following: market demand for ICT products and services • changes in customers' ICT procurement models • key vendor channel strategies, supply chain and customer engagement models • effective positioning of SKY9 solutions in the market identification of ICT industry opportunities and new technology trends • attraction and retention of key personnel 8 • quality and skill of the senior leadership team Staff incentives for 2022: * As part of the strategic review of short-term incentives (STI) for staff, the board was careful not to dilute the share register in a material way and focused on preserving the cash position of SKY9 during this challenging time so as to allow the conversion of performance rights to shares for the provided STIS. * As part of the balancing of shareholder returns with the need to retain and incentivise staff, there has been a change in the STI measure and a reduction in the size of the STI pool and corresponding individuals' targets. * Most employees are eligible to participate in the STI program after a twelve (12) month tenure. 9 Change in Chief Executive Officer: Michael Smith retired as Chief Executive Officer effective 31 December 2020 with Michael Zhang commencing on 1 January 2021. The appointment was notified to shareholders and the ASX on 31 October 2021 including the remuneration terms. 10 Accounting Policies & Significant changes: * has considered the significant impact of the pandemic on the assumptions and judgements in the preparation of the financial statements. * The broad impact on the economy of government measures has affected advertiser appetite for media expenditure within various advertiser categories. Other impacts include temporary rent assistance from commercial partners with rent relief measures, receipt of government assistance measures, and cost control measures in previously planned operating and capital expenditure.
A B E Accounting Policies & Significant changes: * has considered the significant impact of the pandemic on the assumptions and judgements in the preparation of the financial statements. * The broad impact on the economy of government measures has affected advertiser appetite for media expenditure within various advertiser categories. Other impacts include temporary rent assistance from commercial partners with rent relief measures, receipt of government assistance measures, and cost control measures in previously planned operating and capital expenditure. * re-negotiated its financing facilities to $350 million with financial covenants extended to provide further headroom for the next 12 months. * The Board consider that will be able to meet its debts as and when they fall due even though the magnitude and length of time of the disruption from COVID-19 remains uncertain, although continual assessment will need to be maintained. * The government imposed reduction in public movement, strict controls on cross border travel and a halt on international travel have impacted revenue including audience measures, outdoor advertising and air travel audiences not only for the current year but a multi-year period. Assumptions underlying recoverable amounts for impairment testing is the greater of its value in use and its fair value less costs to sell. Fair value less costs of disposal is based on the estimated future cash flows, discounted to their present value using a post-tax discount rate. * JobKeeper subsidy receipts are accounted for under AASB120 Accounting for Government Grants and have been recognised net of employees expenses. * In accordance with AASB15, applies the exemption not to disclose revenue from unfulfilled performance obligations, as performance obligations form part of a contract that has an original term of one year or less. * The timing of revenue recognition, invoicing and cash collections results in accounts receivable, un-invoiced receivables (contract assets) and customer advances (contract liabilities). Media contracts are billed in accordance wtih agreed-upon contractual terms, either upfront, at periodic intervals (eg monthly) or upon achievement of contractual milestones. Revenue from core operating activities consists of Out of Home advertising revenues. Revenue from Out of Home advertising is recognised on a pro rata basis over the period in which the advertising is on display. Revenue from media production work is recognised on completion of the assignment. 11 Four strategic priorities were identified for FY22: • Services - improving margins • Digital Enablement - helping our customers succeed in their digital transformation Customer Experience - unifying every customer touchpoint across our company to improve the overall customer experience. • Vendor Relationships – investing with the right vendors 12 and working their channel plans to our mutual benefit Key impacts, risks and opportunities * there continue to be changes in technological advancements, regulatory development and innovation in the competitive environment. * FY22 has focused on mitigating the risks and impacts of COVID-19. * standard templates for contracts have been developed to ensure compliance to standards and allocation of risk appropriately amongst parties. * data protection and privacy management ensures that the bulk of data is de-identified and anonymous, however, where personal data is required, a data management framework using industry standard encryption policies, extensive monitoring of all critical systems and multiple audit points to cover data lifecycles. 13 14 15 16 17 ACM 1.1 Meeting Notes WP APT 1 Control Testing results AP1-Planning Meeting WP AP2-AR,TA, Materiality & Ris
A B D E F G Н j 1 1 2 Client Name 3 Engagement Title 4 Period Work Paper Reference 6 Objective: PLANNING CONTROL TESTING RESULTS SKY9 Group Ltd Preparer SKY9 Date Prepared 30.6.22 Reviewer APT1 Date Reviewed Initial Tests of Control Results for Planning Phase of the Audit Caitlin Ibrahim 19-Jul-22 Tayla Bacon 20-Jul-22 Dang, Hock, and Armitage (DHA) Chartered Accountants 5 Occurrence Completeness Accuracy Cut-Off Classification Results Sample Size from Test 200 150 х 250 240 X x 500 420 х х X 300 150 х Trade Receivables & Revenue from Operations Control Tests 7 8 Agree client invoices to client statements 9 Reconcile billings (client invoices) with services delivered for client (WIP) 10 Agree client invoices to client agreements 11 Agree client agreement details to masterfile data 12 Match pricing details to pricing masterfile 13 Recalculate invoices for mathematical accuracy 14 Recalculate the trade receivables 15 Review trade receiveables, revenue accounts in the general ledger 16 Review numerical sequencing of invoicing 17 Review evidence of changes to pricing, discounts or write off 300 250 х 300 300 х х 300 300 х х х 400 350 х х X х х X х 100 100 х х х х х 400 260 Results Sample Size from Test 250 190 Occurrence Completeness Accuracy Cut-Off Classification х х 200 160 х 200 200 X X 200 175 х х 18 Payables Controls Tests 19 Match pricing details on invoice to contracts 20 Approved purchase order for media and production services 21 Review trade payables in the general ledger 22 Matching of purchase order & service delivery with suppliers invoice 23 Recalculate the trade payables Weekly reviews by management of exception reports and monthly matching of actual 24 asset/expense payable and expense balances with budgeted amounts 25 For contracted services, compare service contracts with supplier invoices 26 Recalculate supplier invoices for mathmatical accuracy. 27 х 200 200 X х х х х X 500l 380 х х х х 300 250 х х 28 29 30 31 32 33 34 ACM1.1 Meeting Notes WP APT 1 Control Testing results AP1-Planning Meeting WP AP2-AR,TA, Materiality & Risk WP AP2.1 - TB Analysis & Risk +