Evaluate the audit team’s consideration of the password protection for lease revenue. How does the analysis change if you assume that VITALOGISTICS is a private company?
6. InfoC, an external source, confirmed the terms of the marketing agreement. Generally, evidence coming from external sources tends to be more persuasive than evidence coming from sources within the company. Therefore, the confirmation from InfoC provides persuasive evidence that the transaction was properly recognized in 20X4 financial statements. Explain why you agree or disagree with this conclusion.
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7. Do you agree that the Secured Credit Facility should be classified as long-term debt? Provide support for your answer.
8. Evaluate the accounting for the sale of the asset to Roger Martin.
9. At year-end, VITALOGISTICS has three types of receivables outstanding: (a) receivables from end-users, (b) the Canadian receivables, and (c) vendor receivables. Evaluate KPVI’s approach to auditing each of these receivables.
10. Evaluate KPVI’s handling of issues arising subsequent to year-end and its reporting choices.
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