REPL is known for its range of high-end electronic products, from audio appliances, laptops to computer accessories. REPL has earned its reputation through its high-quality products, exceptional after-sales customer service, and an increasingly popular online platform, catering to a diverse consumer base.
During the financial year, the company renovated its office space, leading to an increase in its property, plant, and equipment. The increase in retailing and online operations has also resulted in an increase in operating expenses and payables.
To address the identified risk of material misstatements (ROMM) at the assertion level by the audit management team, you have been assigned by the Audit Senior to perform substantive test procedures over operating expenses, payables, and PPE.
For audit efficiency purposes, all relevant samples were selected by the Audit Senior a week before the audit fieldwork date, and the client has gotten back on the source documents for the selected samples, filed in the respective document folders.
Extracting from the audit planning memorandum, you noted the following:
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