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Assignment:
You are now doing audit work for the Blackberry 2016 year end. Blackberry overall sales have continued to decline significantly and they have continued to shift from being primarily a manufacturer of hardware (Handsets) to a supplier of software and related services.
1. Given the changes at Blackberry in the 2016 year discuss areas of focus in the audit of the payroll cycle.
2. Blackberry manufactures and sells its handsets on a wholesale basis to retailers. Therefore most sales are large and on account with payments within 30 days of the sale. Discuss the relative roles of confirmation and inspection in the audit of the sales/receivable cycle at Blackberry for handset sales.
3. For the objectives of validity and completeness in the handset revenue cycle at Blackberry suggest examples of possible key controls and ways that we could assess the effectiveness of these controls.
4. For each of the objectives of validity and completeness in the handset revenue cycle suggest one dual test of controls and details.
5. Discuss the role of the auditor at the Blackberry ,ear-end inventory count.
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