Ican 2025 Audit And Assurance Question 7

Real Favour Limited is a client of Adodo Lafe & Co (Chartered Accountants). The Audit Manager has just completed his review of the audit file. His review points include: (i) confirming ownership of motor vehicles used for distribution of goods; (ii) confirming the amounts owed by customers; (iii) testing the procedure of payment of wages to daily paid and casual workers; (iv) testing the correctness of salary amounts credited to staff bank accounts; (v) confirming the authorisation for the purchase of plant and machinery; (vi) ascertaining that inventories belonging to the relevant periods have been accounted for during the inventory stock count; (vii) checking the periodic trend in the performance of the company as reflected in the financial statements; (viii) confirming the existence of land and building at the branch office; (ix) understanding the nature of one-off and unusual payments recorded in the financial records; and (x) confirming from management that all liabilities have been provided for.