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Background
Audit Risk
Assertions
Internal Controls/Procedures
100
As of March 31,2013 approximately how many employees did Lenovo have?
What is 54,000?
100
What level of inherent risk was set for Lenovo, based on our assumptions?
What is high?
100
What assertion does checking pre-numbered documents relate to?
What is Completeness/Accuracy?
100
One of Lenovo's controls is to match invoices to receiving documents to purchase orders.
What is Three-Way Matching?
200
Lenovo is a world-wide organization, how many countries do they currently operate in? (Approximately)
What is 60+?
200
How does Lenovo safeguard against unauthorized procedures and transactions?
What is authorization?
200
This means assets, liabilities and equities belong to Lenovo on the reporting date.
What is Existence?
200
What control numerically identifies documents?
What is pre-numbered documentation?
300
Lenovo has grown significantly since their incorporation, what is their current rank in the PC industry?
What is 1st Place?
300
Performing periodic counts is related to what account in the financial statements?
What is inventory?
300
This assertion means Lenovo reported its’ transactions and events in the correct time period.
What is Cutoff?
300
What assertion does sheet to floor test for?
What is Existence?
400
Lenovo is currently entering new markets, what is their current ranking in the mobile market?
What is 4th place?
400
We listed something that can be performed to monitor internal controls, what was it?
What is Sample Testing
400
This assertion means Lenovo included items in the Financial Statements at their appropriate amounts.
What is Valuation?
400
What assertion does floor to sheet test for?
What is Completeness?
500
Based on total revenue, which business segment accounts for the largest portion of revenue?
What is the Notebook segment?
500
Name something that differs from country to country that will impact financial statement consolidation.
What are accounting policies?
500
This assertion means Lenovo ensures all reported assets, liabilities, and equities are fully reported.
What is Completeness
500
During an inventory count, one employee is assigned to count, and another is assigned to record the count, what control does this describe.
What is Segregation of Duties?