Group Peer And Self Review Analysis
Self Review Assessment (Group 2)
Strengths We have discussed four key risk accounts by considering the business operation of Toshiba. Comparing with the assessed group’s essay, we have analysed that essay written by Group 2 has been presented in the logical frame with some conjunction; hence it is easier to be understood by the readers. Indeed the essay written has strengths as follows:
1. Discussion about derivatives
Our essay considered the nature of Toshiba which is a global-wide company facing a risk of volatility in their business. Toshiba employs a variety of derivative financial instruments account such as forward exchange contracts and interest rate swap agreement as a hedging instrument …show more content…
Substantial evidence in determining account at risk and the assertions.
We had determined the accounts at risk and its assertions for inventories and revenues based on the fact happened which were a material misstatement in the financial statement of those two accounts. Our essay had applied some pieces of evidence and historical research to support the opinion; thus the essay is more persuasive and reasonable enough to support the ideas.
3. Combination of accounting policies
Our assignment closely combines the accounting policies in the Annual Report of Toshiba, which was reflected in our investigation of the risk of inventory account. We had combined the method of the lower of the cost or estimated realizable value with the idea that there was a likelihood of obsolete inventories, thereby inventories have a risk of overstatement. It makes our essay more practical and well-ground since we applied accounting policies when to assess the risk of material misstatement.
Suggestion for Improvement Admitting the strengths consisted in our essay, we also realized some issues should be taken into account for improvement, including:
1. The assertion has …show more content…
They argued that inventories, accumulated depreciation, net sales, and research and development are four accounts with high inherent risk, thereby, we identify three strengths of Group 3’s essay, as below:
1. The key account identification Group 3 has been able to identify the key account at the level of assertions. Moreover, this group also well developed an explanation about the system of inventory as a value-added service to its customers and explained of proper audit procedures for inventory associated with the existence assertions, which is a physical count of inventories listed on the client records.
2. The assertion
This group has chosen the most important assertion for each account. Four main assertions have been chosen were existence, valuation and allocation, occurrence and classification respectively. The explanations of those four assertions have been well demonstrated, and presenting a solid understanding of the use of assertions for designing and conducting audit testing.
3. The suggested audit