a.  The THREE documents that would prove with reasonable certainty that Veritas Hope Limited had a bank overdraft of N12,000,000.

i. Bank statement;

ii. Bank reconciliation statement; and

iii. Cash book.

b. Rank these THREE documents in order of reliability, and give reasons for the ranking.

i. Bank statement – this has been received by Veritas Hope Limited from a third party, the bank. The document is therefore independent and reliable;

ii. Bank reconciliation statement – this would carry out before accepting the appointment.

iii. Cash book – this is the least reliable of the three documents because it is an internal document of Veritas Hope Limited which has not been provided for obtaining audit evidence in each circumstance, as the senior in charge of the assignment.

c. 

i. Obtain direct confirmation of the balance from the bank;

ii. Review the bank reconciliation to ensure it is arithmetically accurate and that reconciling items are appropriate and have cleared promptly; and

iii. Cast the cash book and agree the balance to the bank reconciliation.

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

i. Count the cash in the presence of a responsible official;

ii. Obtain a certificate of cash in hand from the responsible official; and

iii. Trace the confirmed balance to the cash book and to the financial statements.

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

Initial audit procedures:

i. Agree the total per the schedule to the amount in the non-current asset register and to the financial statements;

ii. Cast the schedule to ensure it is arithmetically correct; and

iii. Review the schedule for any negative or unusually small balances.

Further tests:

i. Obtain a breakdown of motor vehicles and cast this listing;

ii. Vouch a sample of additions to invoices;

iii. Vouch a sample of disposals to sales invoices and recalculate disposal profits;

iv. Recalculate the depreciation charge for a sample of motor vehicles; and

v. Physically inspect a sample of motor vehicles to ensure they exist and are in good condition.