Assume the role of the audit manager on a publicly traded internet auction company. The company is known as an industry innovator and has recently implemented a new IT system. Upon a review of the company’s operations, you also discover that the client has a heavy reliance on complex IT controls and has undergone a new “green” movement to enhance paperless operations.
1. When preparing the plan for this year’s audit, what are some special considerations you should include?
2. What are indications of high risk areas?
3. What are some indicators that specialists may be necessary for the audit?
4. According to AU 311, what are some planning activities a specialist may be involved in?
5. Summarize the company’s characteristics that require special attention in the audit plan.