As the manager overseeing Audiot and Co., you commenced the planning of audit work for a new client, Windo Ltd on June 3, 2021. Windo's financial year ends on June 30, 2021, and the audit is scheduled to be completed by August 15, 2021. The following information is relevant to the audit engagement:  Windo specializes in providing repair services for motor vehicles and operates from five different locations. All inventory, sales, and purchasing systems are computerized, with each location maintaining its own system.  The software used at each location is identical, as it was custom-developed by a reputable software house specifically for Windo. Data from all locations is consolidated monthly at the head office to generate management and financial accounts.  Currently, you are in the process of planning the audit approach for Windo Ltd. One option under consideration is to modify Audiot & Co.'s audit software to interface with Windo's computerized inventory systems at each location (excluding the head office) for inventory valuation testing.  Additionally, you have been informed that any computer testing will need to be conducted in real-time, and it should be noted that July is a significant holiday period for your audit firm. Required: 1. Outline the advantages of utilizing audit software in the audit of Windo Ltd. 2. Discuss the potential challenges that may arise during the audit of Windo Ltd, and for each challenge, propose a solution to overcome it

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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As the manager overseeing Audiot and Co., you commenced the planning of audit work for a new client, Windo Ltd on June 3, 2021. Windo's financial year ends on June 30, 2021, and the audit is scheduled to be completed by August 15, 2021. The following information is relevant to the audit engagement:  Windo specializes in providing repair services for motor vehicles and operates from five different locations. All inventory, sales, and purchasing systems are computerized, with each location maintaining its own system.  The software used at each location is identical, as it was custom-developed by a reputable software house specifically for Windo. Data from all locations is consolidated monthly at the head office to generate management and financial accounts.  Currently, you are in the process of planning the audit approach for Windo Ltd. One option under consideration is to modify Audiot & Co.'s audit software to interface with Windo's computerized inventory systems at each location (excluding the head office) for inventory valuation testing.  Additionally, you have been informed that any computer testing will need to be conducted in real-time, and it should be noted that July is a significant holiday period for your audit firm. Required: 1. Outline the advantages of utilizing audit software in the audit of Windo Ltd. 2. Discuss the potential challenges that may arise during the audit of Windo Ltd, and for each challenge, propose a solution to overcome it

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