Audit 2 Presentation

Multiple Choice

Which of the follow risk factors will affect the computation of discount rate?

A: Company-Specific Risk

B: Country Risk

C: Concentration Risk

D: Industry Risk

E: Market Risk

• A,D,E

• B,C,D,E

• A,B,D,E

• B,D,E

• A,B,C,D,E

Multiple Choice

Other than long term GDP growth rate, what other rates can potentially be used for terminal value calculation?

• Inflation Rate

• Industry Growth Rate

• Risk-Free Rate

• All of the above

Open Ended

Would you be skeptical of the working capital values? If so, why?

Open Ended

What audit procedures could we use with regards to the company's (lack of) capital expenditure?

Open Ended

Based on the sales observation, what are some areas of significant judgment you can identify?

Open Ended

Based on the cost of sales observation, what are some areas of significant judgment you can identify?

Open Ended

What audit procedures we can used to ascertain the reasonableness of proposed repayment period?

Open Ended

What audit procedures we can used to ascertain the reasonableness of extension of credit period?