The Company under audit has multiple locations all across Canada. Each location has significant operations and assets. There are also many transactions between the locations. How do we get sufficient and appropriate audit evidence in this situation?

Company under audit follows IFRS and has significant goodwill on their balance sheet. Per IFRS the goodwill is subject to an impairment test annually. In performing this test the Company consulted internal experts such as engineers and sales representatives. They also made many assumptions on the future with respect to sales and costs. They then consulted a business valuator from outside the entity to conduct a valuation. After these steps the Company concluded the goodwill is not impaired. How would this information be audited?

Answer rating: 100% (QA)

In a situation where a company under audit has multiple locations across Canada with significant operations assets and transactions between locations obtaining sufficient and appropriate audit evidenc... View the full answer