Ella has been asked to join the team responsible for designing the audit program for a new client, Carnation Corp Ltd (Carnation), a manufacturing and wholesaling firm. Carnation recently went ‘public’ and is now listed on the Australian Securities Exchange. Ella has worked for the audit firm for a year and received a very high performance rating from her supervisors on last year’s audit of Aladdin Pty Ltd (Aladdin), a firm that provides marketing and other consulting services. Carnation and Aladdin have total revenue of approximately the same amount, so Ella feels confident that she can apply her knowledge to the new audit. She takes a copy of the audit program for Aladdin along to the first meeting, intending to suggest they use it as the basis for the audit program for Carnation. Ella thinks that the Carnation audit program could use the same substantive procedures they used on the Aladdin audit.

Required

List some of the problems with Ella’s idea of using Aladdin’s audit program as a basis for designing substantive procedures for Carnation.