Dunlop Limited and Advertising Company has been audited by Acorn Auditing Services for a number of years. The audit team of Acorn Auditing Services visited Dunlop in March, to review the Company's internal control system in preparation for the final audit of the company's financial statements for the year ending 31 July 2021. As part of the final audit team, you, together with other team members, have been instructed to attend a briefing meeting as part of the planning of the final audit of Dunlop Ltd year-end financial statements. REQUIRED: (a) In preparation for the final audit of Dunlop Ltd financial statements for the year ending 31 July 2021, explain the details the auditors need to carry out.

Dunlop Limited and Advertising Company has been audited by Acorn Auditing Services for a number of years. The audit team of Acorn Auditing Services visited Dunlop in March, to review the Company's internal control system in preparation for the final audit of the company's financial statements for the year ending 31 July 2021. As part of the final audit team, you, together with other team members, have been instructed to attend a briefing meeting as part of the planning of the final audit of Dunlop Ltd year-end financial statements. REQUIRED: (a) In preparation for the final audit of Dunlop Ltd financial statements for the year ending 31 July 2021, explain the details the auditors need to carry out.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Dunlop Limited and Advertising Company has been audited by Acorn Auditing Services for a number of years. The audit team of Acorn Auditing Services visited Dunlop in March, to review the Company's internal control system in preparation for the final audit of the company's financial statements for the year ending 31 July 2021. As part of the final audit team, you, together with other team members, have been instructed to attend a briefing meeting as part of the planning of the final audit of Dunlop Ltd year-end financial statements. REQUIRED: A) In preneration for the final 2: t nf r n the dntail. t. (b) In the planning process for the final audit of the financial statements, state five (5) matters that should be discussed at the audit brief meeting.
Dunlop Limited and Advertising Company has been audited by Acorn Auditing Services for a number of years. The audit team of Acorn Auditing Services visited Dunlop in March, to review the Company’s internal control system in preparation for the final audit of the company’s financial statements for the year ending 31 July 2021. As part of the final audit team, you, together with other team members, have been instructed to attend a briefing meeting as part of the planning of the final audit of Dunlop Ltd year-end financial statements. REQUIRED: (a) In preparation for the final audit of Dunlop Ltd financial statements for the year ending 31 July 2021, explain the details the auditors need to carry out. (b) In the planning process for the final audit of the financial statements, state five (5) matters that should be discussed at the audit brief meeting.
You are now nearing the completion of the audit of Rooney Co Ltd for the year ended 31 December 2020. Draft financial statements have been produced. You have been given the responsibility of performing of a review of the audit files before they are passed to audit manager and the audit partner for their review. You have been asked to concentrate on the sources of the evidence obtained. While reviewing the working papers you noted that your junior officers have recorded the following sources of evidence:(i) Oral representation by management in respect of the completeness of sales where the majority of transactions are conducted on a cash basis.(ii) Year-end suppliers' statements (iii) Physical inspection of a non-current asset by an auditor One of your responsibilities is to act as a mentor to junior officers into the department Required : ISA 500 Paragraph 4 states that ‘’The objective of the auditor is to design and perform audit procedures in such a way as to enable the auditor to…
You are a new staff member of Monet & Associates, a mid-sized accounting firm and have been assigned to an engagement team that is conducting the financial report audit for Harrisons Ltd (Harrisons). The engagement team, under the guidance of the engagement partner, Vince Mater, is currently performing a preliminary risk assessment of the audit client. The following documents have been provided to you: Memo from audit partner, Vince Mater, dated 6th January 2020 which includes a summary of the initial audit procedures undertaken by the engagement partner for the 31 December 2019 audit. A relevant industry outlook report provided by the Australian Construction Industry Forum published on 7 November 2019. REQUIRED: You have been asked to assess the inherent risk of the client and perform preliminary analytical procedures as part of the audit planning process in obtaining an understanding about the client’s business and indicate where there is an increased likelihood of…
You are an audit senior of Aidit & Co and are in the process of preparing the audit programmes for the final audit of CariClean Ltd. for the year ending 31 December 2019. The company develops and manufactures specialist cleaning products and has been a client of your firm for several years. The audit manager has attended a planning meeting with the finance director and has provided you with the following notes of the meeting: Aidit & Co calculates a large number of ratios and trends for comparison with industry averages and prior year calculations. For most engagements, the client’s business was significantly different from the industry data and the client would automatically explain away any discrepancies by attributing them to the unique nature of its operations. Aidit is concerned about the usefulness of ratio and trend analysis. However, the analysis is done at the completion of every audit and Aidit believes the calculations provide him with an overview of the client’s…
Star audit firm have started the annual audit of Carrefour Muscat. The auditors have a long meeting with their management. Their target is to conduct the audit during one week. The auditors have started their work. Identify which of the following is related to their audit process. Identifying the risk Conduct interviews Create audit procedure and plan Discussing corrective action plan
You are the Audit Manager in charge of an audit of Bahwan Automobile, a limited liability company. The company's year-end is 31 December, and Bahwan Automobile LLC is being a client for first time. Which of the following matters will you determine in establishing overall audit strategy? O a. The extent of review of another accountant's work O b. The timing in which the employees are to be performed their tasks O The number of resources to allocate to specific entity's department O d. The resources to deploy for specific audit areas
Star audit firm have started the annual audit of Carrefour Muscat. The auditors have a long meeting with their management. Their target is to conduct the audit during one week. The auditors have started their work. identify which of the following is related to their audit process. O a. Discussing corrective action plan O b. Identifying the risk Oc Conduct interviews O d. Create audit procedure and plan
During your review of the audit field work completed by a new junior employee of the audit firm, John Smith, you have noted many areas which require additional review notes. John, who has just completed the interim audit of Taxon Ltd for the year ended 30 June 2019, has just performed testing of controls. When testing controls over payments made to related parties, there should be evidence of approval and sign-off by the chief financial officer (CFO). John selected a sample of payments made to related parties and vouched them back to the electronic funds transfer (EFT) forms to sight the CFO’s signature of approval. Based on a sample of ten payments, six had been approved by the CFO in writing. However, the remaining four EFT forms (for immaterial amounts) did not have the CFO’s signature, but John noted that the CFO had given verbal approval. John concluded that because all internal controls were working, the audit team could use analytical procedures alone to audit payments made to…
You are the audit manager of Matfine & Co and are reviewing the key issues identified in the files of two audit clients as follows: 1) Pito Industries Co (Pito) Pito’s year-end was 31 March 2019 and the draft financial statements show revenue of $32·2 million, receivables of $6·1 million and profit before tax of $3.4 million. The fieldwork stage for this audit has been completed. A customer of Pito owed an amount of $375,000 at the year-end. Testing of receivables in April highlighted that no amounts had been paid to Pito from this customer as they were disputing the quality of certain goods received from Pito. The finance director is confident the issue will be resolved and no allowance for receivables was made with regards to this balance. 2) Albo Trading Co (Albo) Albo is a new client of Matfine & Co, its year-end was 31 January 2019 and the firm was only appointed auditors in February 2019, as the previous auditors were suddenly unable to undertake the audit. The fieldwork…
You are the audit manager of Matfine & Co and are reviewing the key issues identified in the files of two audit clients as follows: Pito Industries Co (Pito) Pito’s year-end was 31 March 2019 and the draft financial statements show revenue of $32·2 million, receivables of $6·1 million and profit before tax of $3.4 million. The fieldwork stage for this audit has been completed. A customer of Pito owed an amount of $375,000 at the year-end. Testing of receivables in April highlighted that no amounts had been paid to Pito from this customer as they were disputing the quality of certain goods received from Pito. The finance director is confident the issue will be resolved and no allowance for receivables was made with regards to this balance. Albo Trading Co (Albo) Albo is a new client of Matfine & Co, its year-end was 31 January 2019 and the firm was only appointed auditors in February 2019, as the previous auditors were suddenly unable to undertake the audit. The fieldwork…
You are the audit manager of Matfine & Co and are reviewing the key issues identified in the files of two audit clients as follows: Pito Industries Co (Pito) Pito’s year-end was 31 March 2019 and the draft financial statements show revenue of $32·2 million, receivables of $6·1 million and profit before tax of $3.4 million. The fieldwork stage for this audit has been completed. A customer of Pito owed an amount of $375,000 at the year-end. Testing of receivables in April highlighted that no amounts had been paid to Pito from this customer as they were disputing the quality of certain goods received from Pito. The finance director is confident the issue will be resolved and no allowance for receivables was made with regards to this balance. Albo Trading Co (Albo) Albo is a new client of Matfine & Co, its year-end was 31 January 2019 and the firm was only appointed auditors in February 2019, as the previous auditors were suddenly unable to undertake the audit. The fieldwork…