Prepare an audit planning memo, to include the following a. The objective of your audit (what is
Question:
Prepare an audit planning memo, to include the following
a. The objective of your audit (what is the ultimate goal?)
b. The company’s pertinent aggregate financial data (e.g., total assets)
c. The history and background of the company
d. Familiarizing yourself with the company and the industry (using internet resources)
e. The principals (CEO, CFO) and their qualifications
f. The integrity of client management
g. Capitalization (i.e., percentage of assets financed by debt and percentage financed by equity)
h. The type of company (public) and reporting requirements
i. The markets served
j. Materiality level for planning the audit work (use 5% of pretax income)
k. The type of opinion you expect to render on the financial statements
l. The probable audit report date (see date of last year’s report)