You are an auditor at a public accounting firm. You areconducting an audit for the financial year ending December 31,2019. Your client has go public. This client is a propertydevelopment company. Your client builds property in the form ofapartment units, housing / real estate and also property investmentproducts in the form of lots ready to build. In addition, thisclient also has a project development cooperation with itscustomers. The client is bound by a contract signed by both partiesbefore a notary for the construction of a project with thiscustomer. The project has not been completed 100%, however, theclient says that the project has been completed 60% and the clientacknowledges 60% of the development as revenue in the 2019financial year.
a. In your opinion, as an auditor, what account should theclient classify the apartment and housing / real estate complex be?Explain your answer!
b. What is the audit procedure that you will applyto ensure the recognition of revenue that is 60% of theproject!
c. What audit evidence will you examine and what are the relatedassertions? Explain your answer!
