Question

You are a staff auditor with Zubair Associates. Your audit team is in the planning stage for Dhofar Cosmetics Inc., a beauty supply wholesaler. Describe the brainstorming process and types of issues that may be brought to the surface regarding your client.

Answer 1

an Answou:- Page-1 According to the given question; The steps in planning audit include (planning procedure), 1) Basic discussions with the clienti about the nature of the engagement and the client's business and industry are perfoomed frost, and the auditor meets the key employees, of new employees of a continuing client The overall audit strategy of the timing of the audit may be discussed, but don't discuss specifte audit procedures. 2) Review of audit documentation from the previous audits performed by the accounting firm or a predecessor auditoo will assist in developing an outline of the audit program. 3) Ask about secent developments: in the company such as mergers and new product lines which cause the audit to differ from earlier 4) Interim financial statements: are analyzed to identify accounts and transactions that differ from expectations (based on factoos such as budgets of prior periods). The performance of such analytical procedures is mandatory in the planning of an audit اهدان years.

to identify accounts that may be misstated and that deserve special emphasis in the audit program. 5) Non- audit personnel: of the acrounting from who have provided services (such as tax preperation to the client should be identified and consulted to leaon more about the client. 6) Staffing: for the audit should be determined and a meeting held to discuss the engagement Timing: of the various audit procedures should be determined. For example: internal control testing needs to be performed early in the engagement, Inventory counts need to be perfoomed at or near the balance sheet date and the client de presentation letter cannot be obtained until the end of the audit field work. 8) outside assistance? needs should be determined, including the use of a specialit as chequrbed a tax practioner of an LIT) professional).E the determination of the extent of involvement of the internal auditors of the client.

O pronouncements: on accounting principles and audit guides should be bead or reviewed to assist in the development of complete audit programs fitting the unique needs of client's business and industry. 1o) Scheduling with the client is needed to Cooodirate activities, for eg: client prepared schedules need to be ready when the auditoo is expected to examine them and the client needs to be be informed of dates when they will prohibited from accessing deposit boxes to ensure the integrity of counts of securities held at banks. *The memonic BRAINSTORM reminds you than an auditoo's Brainstorm if they don't plan out the audit carefully before beginning the detailed desting of client records * bank safe please - please kindly Up note Thank you in advance.