Identify the key assertion at risk.

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Reference no: EM133239436

You are the auditor for Dash Deliveries (DD), a company that delivers packages for a range of retailers across Sydney. DD pays drivers a flat rate per 8-hour shift. Last year there were no overtime payments permitted. From the beginning of this year (following a negotiation with the driver's union) drivers are entitled to overtime payments if they are required to deliver more than 60 packages or the deliveries are in more than 5 suburbs. You note that this year's wages expense is approximately the same as last year, with few overtime payments.

1. Identify the key assertion at risk.

2. Explain why this represents a risk to the auditor.

3. Outline a specific, practical preventive control that would directly address the risk.

4. Outline how you would test the preventive control recommended in (3) above.

5. Outline a specific, practical detective control that would directly address the risk.

6. Outline how you would test the detective control recommended in (5) above.

Reference no: EM133239436

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