You are the audit senior, and a new staff accountant, Jane, will be assisting you in...

 

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You are the audit senior, and a new staff accountant, Jane, will be assisting you in the audit of ABB Ltd. Your firm has auditee for four years and has always issued an unqualified opinion. Jane has recommended that to keep audit costs low, she will follow last year's audit plan for the tests of controls and substantive test will use analytical procedures only at the planning stage. At the planning stage, Jane compared the current year balances with the prior year balances, with industry figures, and with company's budget, and she reviewed the working papers from the previous audit. Required: a. Explain whether Jane's plan regarding analytical procedures conforms to Canadian Auditing Standards. (2 Marks) b. What type of information would Jane find in the prior year audit working papers that would be relevant for her current audit? Provide four examples. (4 Marks) c. List four other examples of information-gathering analytical procedures Jane should conduct, and briefly explain how these would provide relevant information for the planning stage. (4 Marks) Be very specific in explaining the WHAT and the WHY. You are the audit senior, and a new staff accountant, Jane, will be assisting you in the audit of ABB Ltd. Your firm has auditee for four years and has always issued an unqualified opinion. Jane has recommended that to keep audit costs low, she will follow last year's audit plan for the tests of controls and substantive test will use analytical procedures only at the planning stage. At the planning stage, Jane compared the current year balances with the prior year balances, with industry figures, and with company's budget, and she reviewed the working papers from the previous audit. Required: a. Explain whether Jane's plan regarding analytical procedures conforms to Canadian Auditing Standards. (2 Marks) b. What type of information would Jane find in the prior year audit working papers that would be relevant for her current audit? Provide four examples. (4 Marks) c. List four other examples of information-gathering analytical procedures Jane should conduct, and briefly explain how these would provide relevant information for the planning stage. (4 Marks) Be very specific in explaining the WHAT and the WHY.

Answer rating: 100% (QA)

a Janes plan regarding analytical procedures does conform to Canadian Auditing Standards According to the Canadian Standard on Auditing CSAs 200 Planning an Audit of Financial Statements analytical pr... View the full answer