QUESTION TWO The finance director has requested that the deadline for the 20X6 audit be shortened by a month and has asked the audit engagement partner to consider if this will be possible The partner has suggested that in order to meet this new tighter deadline the firm may carry out both an interim and final audit for the audit of Milla Co to 30 September 20X6 Required Explain the difference between an interim and a final audit (4 marks) Explain the procedures which are likely to be performed during an interim audit of Milla Co and the impact which it would have on the final audit (6 marks) Explain audit risk and the components of audit risk (4 marks) What are Audit Working Papers and what is contained in the Audit Working Papers (6 marks)

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Question: QUESTION TWO The finance director has requested that the deadline for the 20X6 audit be shortened by a month and has asked the audit engagement

QUESTION TWO

The finance director has requested that the deadline for the 20X6 audit be shortened by a month and has asked the audit engagement partner to consider if this will be possible. The partner has suggested that in order to meet this new tighter deadline the firm may carry out both an interim and final audit for the audit of Milla Co to 30 September 20X6.

Required:

Explain the difference between an interim and a final audit. (4 marks)
Explain the procedures which are likely to be performed during an interim audit of Milla Co and the impact which it would have on the final audit. (6 marks)
Explain audit risk and the components of audit risk. (4 marks)
What are Audit Working Papers and what is contained in the Audit Working Papers. (6 marks)

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