Question at position 9 _________ requires lots of processing power and is therefore mainly used with Internet-enabled devices today.CAPTCHAHandwriting recognitionOptical mark recognitionSpeech recognitionSingle choice
A
CAPTCHA
B
Handwriting recognition
C
Optical mark recognition
D
Speech recognition
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You are an audit senior with Chen & Partners and you are working on the final audit of Ferndale Ltd for the year ended 30 April 2026. Ferndale Ltd is a commercial property management and building maintenance company, providing facilities management, cleaning and repair services to office buildings, shopping centres and industrial parks. Ferndale Ltd’s draft profit before tax is $6.3 million (2025: $5.1 million) and total assets are $48.5 million (2025: $41.2 million). You have been provided with the following information regarding the draft financial statements. Plant and equipment and disposals On 1 January 2026, Ferndale Ltd replaced 15 of its industrial floor-cleaning machines used across its managed properties. The old machines had a carrying amount of $1.6 million, as recorded in the non-current assets register and were given in part-exchange against new machines costing $3.8 million. $3.1 million was also paid in cash. Trade receivables Ferndale Ltd’s finance manager, who was responsible for reviewing the monthly aged receivables report and following up overdue accounts, was dismissed in February 2026 for misconduct and the role has only recently been filled. The trade receivables collection period increased from 48 days as at 31 December 2025 to 68 days as at 30 April 2026. An allowance for year-end trade receivables of $185,000 (2025: $140,000) has been recognised. Potential breach of environmental regulations In January 2026, a neighbouring business complained to the environmental protection authority that Ferndale Ltd has been improperly disposing of hazardous cleaning chemicals at several of its managed properties. The environmental protection authority has launched an investigation but the directors of Ferndale Ltd are not intending to disclose this issue or make any provision as they do not believe that the potential fine, which is $45,000 per incident, is material.[Fill in the blank] Discuss and explain THREE (3) substantive procedures the auditor should perform to obtain sufficient and appropriate audit evidence in relation to Ferndale Ltd’s plant and equipment additions and disposals.[Fill in the blank] Discuss and explain THREE (3) substantive procedures the auditor should perform to obtain sufficient and appropriate audit evidence in relation to the valuation of Ferndale Ltd’s trade receivables.[Fill in the blank] Discuss and explain TWO (2) procedures the auditor should perform to obtain sufficient and appropriate audit evidence in relation to the potential breach of environmental regulations by Ferndale Ltd.[Fill in the blank]
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