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FIN6002: Describe the information you will seek, and procedure you will perform in order to understand the entity: Audit Assignment, AU, UK
| University | Arden University (AU) |
| Subject | FIN6002 Audit Time Constrained Assessment |
Question 1
A. You are an audit supervisor responsible for understanding the entity and its environment and assessing the risk of material misstatements for the audit of Pharma Co for the year ending 31 July 2022. Pharma Co is a company listed on a stock exchange.
The company is a wholesaler engaged in the supplies of pharmaceutical products to a wide range of stores across the Northeast of England, under a variety of different brand names. You have worked on the audit of this client for many years as an audit junior.
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Required:
Describe the information you will seek, and procedure you will perform in order to understand the entity and its environment and assess the risk for the audit of Pharma Co for the year ending 31 July 2022.
(10 marks)
B. You are now nearing the completion of the audit of Pharma Co for the year ending 31 July 2022. The draft financial statements have been produced and you have been given the responsibility of performing a review of the audit files before they are passed to the audit manager and the audit partner for their review.
You have been asked to concentrate on the proper completion of the audit working papers. Some of the documents have been produced electronically while others printed out for you.
Required:
Describe the types of audit working papers you should expect to see in the audit files and the features of those working papers that show that they have been properly completed.
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