Hellios Comuters PLC (Hellios) Case Study

Decentralized Applications (DApps)
October 30, 2019
Hellios Computers Limited Case Study Questions
November 1, 2019

Hellios Comuters PLC (Hellios) Case Study

CASE STUDY (60 marks)
Hellios Comuters PLC (Hellios) is a manufacturer and retailer of notebook computers.
The company conducts operations nationally. Its manufacturing facilities are situated
in London.
The company’s business strategy combines its direct customer approach with a highly
efficient manufacturing and supply chain management system. This strategy enables
Hellios to provide customers with high quality notebook computers and products that
are easy to buy and use. The company also recently opened concept stores, which
are situated in malls and high streets throughout United Kingdom. These concept
stores allow customers to purchase products directly and experience new technology
first hand via continuous demonstrations of new models introduced by the company.
This direct customer focus allows the company to reduce the cost of its products by
avoiding typical dealer markups and avoiding higher inventory costs associated with
the wholesale/retail channel.
PART A (35 marks)
You are a partner of Moneywise Incorporated (Moneywise). During the year under
review, Moneywise has been appointed as the external auditors of Hellios for the 30
September 2019 audit. The previous auditors’ services were terminated, following
disputes concerning various accounting issues.
You are currently engaged in planning the audit of Hellios.
The audit manager presented the following working papers (attached) to you.
WP description Working paper reference
Extracts from pre-engagement checklist B100
Newspaper report B101
Health and safety in the manufacturing process C600
REQUIRED:
1 With reference to working paper B100 and B101, on working papers, write down
any concerns you may have on the procedures that Moneywise Incorporated
followed in accepting Hellios as an audit client for the year ended 30 September
2019. (23)
2 Using working paper C600 explain on a working paper for the 2019 audit of
Hellios, how the health and safety in the manufacturing process of assembly
plant workers would impact on your assessment of the audit risks at both the
financial statement level and the assertion level. (12)