Question 1

T&N’s manufacturing subsidiary in Singapore, TNM, is the first Group company in Singapore that is not a dental practice. It was operating at 75 percent capacity as of 31 December 2021, supplying surgical masks to all the T&N dental outlets in Singapore. When operating at full capacity from 2022 onwards, it may also sell to other dental practices locally.

(a) Analyse the changes to the Group financial information between 31 December 2020 and 31 December 2021, to demonstrate the impact of TNM’s operations on:

(b) Based on your analysis, evaluate and explain one (1) financial statement item at high risk of material misstatement (RMM).

(c) For the RMM evaluated, explain the key substantive procedures PQS should perform, and the audit exception(s) that PQS would identify through these substantive procedures.

You may use the following templates to organize your answers for Question 1 (a), (b) and (c). Please note there is a 3-page limit for your answer to Question 1.

Take professional academic assistance & Get 100% Plagiarism free papers
Get A Free Quote

Question 2

T&N plans to launch its AI platform on the Group’s internal network. In the first quarter of 2022, it will become available to dentists in all of T&N’s Singapore outlets. Access will be rolled out to the practices in Malaysia from the third quarter of 2022, and to the PRC practices in the first quarter of 2023.

Management believes that the AI platform will improve the quality of dental care provided, as every T&N dentist can access the Group’s combined expertise and collective knowledge. This will increase patients’ confidence in treatments, attract more motivated and talented dentists to join the Group, and thus result in higher revenue and profit in due course.

Based on management’s expectations of revenue growth, the development costs incurred in 2021 for the AI platform have been recorded as an intangible asset in T&N’s financial statements.

You may use the following templates to organize your answers for Question 2 (a), (b) and (c). Please note there is a 3-page limit for your answer to Question 2.

Buy Custom Answer of This Assessment & Raise Your Grades
Get A Free Quote

Question 3

PQS is the external auditor for all the T&N Group companies in Singapore. The financial statement audits of the subsidiaries in Malaysia and the PRC are performed by local public accounting firms in those countries, which are not members of the PQS international network of firms.

The Group’s internal audit functions in Singapore, Malaysia, and the PRC are performed by another Singapore public accounting firm, Plexia.

(a) Compare and evaluate similarities and differences in the ways that PQS assesses the competence and independence of:
The Group’s internal auditor, Plexia.
The component auditors of the foreign subsidiaries.

(b) Discuss why PQS might rely on tests of internal controls of Group companies performed by Plexia during the year ending 31 December 2021.

(c) Examine how reliance on the work performed by internal audit and/or component auditors affects PQS’s legal liability for its opinion on the Group’s consolidated financial statements.

You may use the following templates to organize your answers for Question 3 (a), (b) and (c). Please note there is a 3-page limit for your answer to Question 3.

Take professional academic assistance & Get 100% Plagiarism free papers
Get A Free Quote

Question 4

The Group’s statement of financial position on 31 December 2021 contains $53.497 million for intangible assets, comprising goodwill on the acquisition of subsidiaries ($51.675 million) and software development costs incurred in 2021 ($1.822 million).

Following management’s annual impairment review for the goodwill balance, no impairment loss was recognized for the reporting year. The development costs will be amortized over 5 years from 2022.

Given the general post-COVID-19 economic conditions, T&N suggests to PQS that the company can engage Plexia’s Valuation Services department to perform an independent valuation of the goodwill.

(a) Assess whether PQS should treat the valuation of intangible assets as a key audit matter (“KAM”) in the T&N audit report.

(b) In relation to the intangible assets, evaluate the need for PQS to modify its audit opinion on the T&N Group consolidated financial statements, and what form the audit opinion should take.

(c) Examine any ethical issues relating to Plexia’s independence and competence in providing the valuation of the goodwill, as suggested by T&N’s management.

You may use the following templates to organize your answers for Question 4 (a), (b) and (c). Please note there is a 3-page limit for your answer to Question 4.

Write My Assignment

Hire a Professional Essay & Assignment Writer for completing your Academic Assessments

Native Best Writers Team

  • 100% Plagiarism-Free Essay
  • Highest Satisfaction Rate
  • Free Revision
  • On-Time Delivery

QUALITY: 100% ORIGINAL – NO PLAGIARISM

(USA, AUS, UK & CA PhD. Writers)

CLICK HERE TO GET A PROFESSIONAL WRITER TO WORK ON THIS PAPER AND OTHER SIMILAR PAPERS

The Best Custom Essay Writing Service

About Our Service

We are an online academic writing company that connects talented freelance writers with students in need of their services. Unlike other writing companies, our team is made up of native English speakers from countries such as the USA, UK, Canada, Australia, Ireland, and New Zealand.

Qualified Writers

Our Guarantees:

CLICK TO SUBMIT YOUR ORDER