Question

QUESTION 4 Audit Planning and Analytical Procedures (15 marks) (A)Audit Planning Your audit firm, Samuel and Samuel, is the auditor of Greenfield Pty Ltd (Greenfield), a large proprietary company with a 30 June year end. The company has two subsidiaries: Range Pty Ltd (Range), which runs a sheep station in outback New South Wales, and Doggie Pty Ltd (Doggie) a mobile dog-grooming service for which it generally sells franchises (but which it sometimes operates directly). You have had an initial conversation with the financial controller at Greenfield, who has given you the sad news that Doris, the company's bookkeeper for the past 20 years, became suddenly ill in May, not long after the installation of the company's new computer system. Doris has since died, and has not yet been replaced. Various members of the company's staff have been doing the bookkeeping to the best of their abilities when they have had time. The senior audit partner is particularly upset, as he has been conducting the audit for approximately 15 years. Doris was also his next-door neighbour and a friend of his family Required: Identify and explain the relevant matters that would influence the scope of the audit engagement in the planning stage of the audit. (7 marks)

Answer 1

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