The change in the position versus the previous year also shows that the accounts receivable figure has gone up sharply, while bad debt provisions increased only slightly.
What could the reasons for this be:
- Has customer payment behaviour deteriorated?
- Did a large number of major events take place towards the end of the year?
- Has the hotel expanded?
Kevin has assembled some possible risks for you below. Choose the assertion (audit objective) that appears most important to you in this situation. In the solution, we then outline possible audit procedures aimed at achieving this objective.
To complete this task, answer the multiple-choice quiz.
This experience is self-paced. However, Kevin is completing the statement in 1 hour and need your valuable input. We recommend you spend no more than that completing this task.
Ready? That was your final task below.