You are the auditor of a listed company, Lyons Holdings, which has subsidiaries in the UK and overseas. All the subsidiaries are involved in the manufacture or distribution of plastic goods and have the same accounting year end as the holding company. Required: Critically assess the factors that should be considered and the procedures that should be performed in deciding the extent of reliance to be placed on the work of component auditors.
You are the auditor of a listed company, Lyons Holdings, which has subsidiaries in the UK and overseas. All the subsidiaries are involved in the manufacture or distribution of plastic goods and have the same accounting year end as the holding company. Required: Critically assess the factors that should be considered and the procedures that should be performed in deciding the extent of reliance to be placed on the work of component auditors.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You are the auditor of a listed company, Lyons Holdings, which has subsidiaries in
the UK and overseas. All the subsidiaries are involved in the manufacture or
distribution of plastic goods and have the same accounting year end as the holding
company.
Required:
Critically assess the factors that should be considered and the procedures
that should be performed in deciding the extent of reliance to be placed on the
work of component auditors.
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