(b) Audit risks and responses (only 6 risks required)
– Goods in transit from Africa 2
– Research and development expenditure 2
– Capitalisation of costs of plant and machinery 2
– Senior management bonus scheme 2
– Allowance for receivables 2
– Introduction of new general ledger system 2
– July 20X6 control account reconciliations not undertaken 2
– Purchase ledger closed down on 8 August 2
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Max 6 issues, 2 marks each 12
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