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 to …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