ExpertACCA · Question 11 · Audit Evidence
SECTION A - CASE 3: HARVESTYIELD AGRITECH
HarvestYield AgriTech manufactures smart farming equipment. You are auditing the financial statements for the year ended 31 December 20X6. The company recently introduced a new line of AI-driven tractors, making older models potentially obsolete. Inventory is held at 15 different regional depots. The company uses a bespoke computerized inventory system. You are planning the inventory count attendance and the substantive testing of receivables, as several farming clients have requested extended payment terms due to a poor harvest season.
Which of the following financial statement assertions is most at risk regarding the older models of tractors held in inventory?
SECTION A - CASE 3: HARVESTYIELD AGRITECH
HarvestYield AgriTech manufactures smart farming equipment. You are auditing the financial statements for the year ended 31 December 20X6. The company recently introduced a new line of AI-driven tractors, making older models potentially obsolete. Inventory is held at 15 different regional depots. The company uses a bespoke computerized inventory system. You are planning the inventory count attendance and the substantive testing of receivables, as several farming clients have requested extended payment terms due to a poor harvest season.
Which of the following financial statement assertions is most at risk regarding the older models of tractors held in inventory?
Answer options:
Existence
Completeness
Valuation and allocation
Rights and obligations
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