PT Maha Gogo is a newly established company which main operation is to rent and sell...

PT Maha Gogo is a newly established company which main operation is to rent and sell vehicle. At January 1, 2019 PT Maha Gogo purchased 100 cars (@USD10,000) on accounts, in which half of them will be up for sale. During the year, PT Maha Gogo has sold 25 cars and made a 25% payment to the vendor for the purchase made at January 1, 2019.

As an auditor in charge of year end audit December 31, 2019 of PT Maha Gogo, you are required to prepare responses to audit risks pertaining to the following management assertions:

Existence: explain briefly 1 (one) audit procedure to provide assurance for this assertion
Rights & Obligations: explain briefly 1 (one) audit procedure to provide assurance for this assertion
Presentation & Disclosure: as of December 31, 2019 what is the total amount of company’s to be reported Inventory and Account Payable?

Expert Solution

ekkarill92 answered 2 years ago

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