You are a trainee auditor working for a small audit firm. You completed your accounting degree at the end of last year and although you have not yet had much experience, you are concerned at some of the practices and procedures adopted at your audit firm. You overhear the two partners, Alex and Riley, discussing some problems they are facing with a particular client. Alex is advising Riley to ‘get the 42 Auditing: A Practical Approach paperwork right’ on the audit, otherwise they will be in trouble if they get selected for the ASIC inspection program. Alex is also concerned that ‘the CALDB will be after them’. After the conversation, Riley comes to you to ask if you, as a recent graduate, know anything about the ASIC inspection program and the CALDB. Riley confesses that he hasn’t been keeping up to date.

Required

Write a report to Riley explaining (i) ASIC’s audit inspection program and (ii) the CALDB and how it operates.