Question 1- Audit Risk and Strategy, including Lakeside (18 marks) (a) Audit procedures are commonly categorised according to their overall purpose, as follows: risk assessment; and risk response: tests of controls, tests of details of transactions, test of details of balances. Discuss how your assessment of elements of the audit risk model allows you to determine your overall audit strategy. (8 marks) Your discussion should focus on the way your overall audit strategy influences the nature, timing and extent of these categories of audit procedures (specifically focus on how much and when you would apply each of the categories of audit procedures). (b) This part of the question is asking you to "apply" what you have explained above in the context of the Lakeside Company case study you were asked to study during the session. Explain how Abernethy & Chapman executed their audit strategy in conducting their audit engagement of the financial report for the Lakeside Company. (10 marks) Your explanation needs to be using specific examples from the Lakeside Company case study to illustrate what you explained in part(a). Question 1- Audit Risk and Strategy, including Lakeside (18 marks) (a) Audit procedures are commonly categorised according to their overall purpose, as follows: risk assessment; and risk response: tests of controls, tests of details of transactions, test of details of balances. Discuss how your assessment of elements of the audit risk model allows you to determine your overall audit strategy. (8 marks) Your discussion should focus on the way your overall audit strategy influences the nature, timing and extent of these categories of audit procedures (specifically focus on how much and when you would apply each of the categories of audit procedures). (b) This part of the question is asking you to "apply" what you have explained above in the context of the Lakeside Company case study you were asked to study during the session. Explain how Abernethy & Chapman executed their audit strategy in conducting their audit engagement of the financial report for the Lakeside Company. (10 marks) Your explanation needs to be using specific examples from the Lakeside Company case study to illustrate what you explained in part(a)