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You are the audit senior on the audit of Fox Electronics Ltd (FEL) for the year ended 30 June 2020. FEL is an Australian listed company that retails electronic equipment. During the year, FEL expanded rapidly both locally and overseas, particularly to France and Brazil. As a result of this rapid expansion its accounts receivable in countries both increased considerably. Required Explain the auditing procedures you would undertake to obtain necessary assurance that all subsequent events have been identified and considered before completion and signing of the auditor’s report.

FINANCIAL ACCOUNTING

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You are the audit senior on the audit of Fox Electronics Ltd (FEL) for the year ended 30 June 2020. FEL is an Australian listed company that retails electronic equipment. During the year, FEL expanded rapidly both locally and overseas, particularly to France and Brazil. As a result of this rapid expansion its accounts receivable in countries both increased considerably.

Required

Explain the auditing procedures you would undertake to obtain necessary assurance that all subsequent events have been identified and considered before completion and signing of the auditor’s report.

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Audit strategy must include: Characteristics of the engagement (Scope) Timing of reporting Materiality Risk assessment procedures performed Audit approach
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