You are a part of the team responsible for planning the Argent Minerals Limited(ASX code – ARD), a food and beverage company, audit engagement for 2021. You are required to gather relevant background information and prepare a report for a meeting with your audit seniors. Assume that this is the first time that the audit will be conducted by your audit firm for this client.

Your report must address the following issues:

(a) What are the areas in which ARD conducts its operations?

(b) Are there any events or conditions that may cast significant doubt on the ARD’s ability to continue as a going concern? Explain. Your answer should be supported by at least four factors

(c) What are the laws/regulations (other than financial related categories which include legislations such as: Corporations Act 2001, Australian taxation laws, etc.) affect ARD’s operations? You need to list and briefly describe three laws/regulations.

(d) Based on your understanding of ARD and its environment, list and explain three accounts that could be at risk of material misstatements. You also need to identify the key assertion at risk for each identified account.

(e) With specific reference to ARD’s corporate governance arrangements, you need to assess the likelihood of potential reliance that could be placed on the overall control environment. Your conclusion should be supported by at least four factors

Answer rating: 100% (QA)

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