Ican 2025 Audit And Assurance Question 4

Practice mixed question 4 from the 2025 Ican Audit And Assurance examination.

Ican 2025 Audit And Assurance Mixed

Question 4 ICAN • 2025 • AUDIT AND ASSURANCE • mixed

The draft financial statements of Veritas Hope Limited as at December 31, 2024 revealed: (i) bank overdraft balance of N12,000,000; (ii) cash balance of N30,000; (iii) long term borrowings of N25,000,000; and (iv) motor vehicles having a carrying value of N28,000,000.

Requirements

( a )

Explain the THREE documents that would prove with reasonable certainty that Veritas Hope Limited had a bank overdraft of N12,000,000 as at December 31 2024.

( b )

Rank these THREE documents in (a) above in order of reliability, and give reasons for the ranking.

( c )

Explain what procedures you would carry out with the THREE documents to prove with reasonable certainty that Veritas Hope Limited had a bank overdraft of N12,000,000.

( d )

Describe the audit procedures to prove the existence of the cash balance of N30,000 in the company’s safe as at December 31, 2024.

( e )

Explain the initial audit procedures and further tests to be carried out in relation to the carrying value on the schedule of motor vehicles.

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About This Question

This is Ican 2025 Audit And Assurance Question 4. It is one of the mixed questions from the 2025 Ican Audit And Assurance examination.

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