question archive Case study Joahim Gauss S
Subject:AccountingPrice: Bought3
Case study Joahim Gauss S.C.
Joahim Gauss is the limited partnership of the auditors, during the audit of Kurnik Polski Pls there were randomly selected 25 balances of the clients and agreed to the supporting documentation and confirmation the errors identified are shown in the table below
Customer
Balance as per client
Balance as per auditor
Difference
Kowalski s.a.
582218
597595
-15378
RTDT s.a.
890111
912924
-22814
Oramas sp. z o.o.
379564
286505
-93059
Kariabik s.c.
827956
860679
-32723
Topola s.kom.
42953
178808
-135855
Wyj?cie s.a.
660065
665256
5190
Element s.c.
869434
842310
27124
Kostrzewa Adam
331267
352151
-20884
John Smith
166144
141369
24775
Sum
4 749 712
4837597
-263623
Total value of the trade debtors amount to €8 276 345,25; value in sample 5 123 437. Total value of receivables disclosed on the face of the balance sheet amount to € 8 076 245,25.
Engagement materiality is €1.7 million, tolerable error €1million, the SAD limit is €100k.
You are required to:
Q1- Show the value of identified error and describe how to estimate the value of error against the entire trade debtors. Approximate the total value of errors in all trade debtors' population and assess the appropriateness of the debtor's provision. Point out the different audit procedures you might apply to trade debtors to ensure fairness of the total population.