Dunlop Limited and Advertising Company has been audited by Acorn Auditing Services for a number of years. The audit team of Acorn Auditing Services visited Dunlop in March, to review the Company's internal control system in preparation for the final audit of the company's financial statements for the year ending 31 July 2021. As part of the final audit team, you, together with other team members, have been instructed to attend a briefing meeting as part of the planning of the final audit of Dunlop Ltd year-end financial statements. REQUIRED: (a) In preparation for the final audit of Dunlop Ltd financial statements for the year ending 31 July 2021, explain the details the auditors need to carry out.

Dunlop Limited and Advertising Company has been audited by Acorn Auditing Services for a number of years. The audit team of Acorn Auditing Services visited Dunlop in March, to review the Company's internal control system in preparation for the final audit of the company's financial statements for the year ending 31 July 2021. As part of the final audit team, you, together with other team members, have been instructed to attend a briefing meeting as part of the planning of the final audit of Dunlop Ltd year-end financial statements. REQUIRED: (a) In preparation for the final audit of Dunlop Ltd financial statements for the year ending 31 July 2021, explain the details the auditors need to carry out.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter2: The Auditor’s Responsibilities Regarding Fraud And Mechanisms To Address Fraud: Regulation And Corporate Governance

Section: Chapter Questions

Problem 19CYBK

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Ginnian and Fitch, a regional accounting firm, performs yearly audits on a number of different for-profit and not-for-profit entities. Two years ago, Luisa Mellina, Ginnians partner in charge of operations, became concerned about the amount of audit time required by not-for-profit entities. As a result, she instituted a series of training programs focusing on the auditing of not-forprofit entities. Now, she would like to see if the training seemed to work. So, she ran a multiple regression on 22 months of data for Ginnian for three variables: the total monthly cost of audit professional time, the number of not-for-profit audits, and the hours of training in the audit of not-for-profit entities. The following printout was obtained: Required: 1. Write out the cost equation for Ginnians audit professional time. 2. If Ginnian expects to have 9 audits of not-for-profits next month and expects that audit professionals will have a total of 130 hours of not-for-profit training, what is the anticipated cost of professional time? 3. Are the hours spent auditing not-for-profit entities positively or negatively correlated with audit professional costs? Is percentage of experienced team members positively or negatively correlated with audit professional cost? 4. What does R2 mean in this equation? Overall, what is your evaluation of the cost equation that was developed for the cost of audit professionals?
Dunlop Limited and Advertising Company has been audited by Acorn Auditing Services for a number of years. The audit team of Acorn Auditing Services visited Dunlop in March, to review the Company’s internal control system in preparation for the final audit of the company’s financial statements for the year ending 31 July 2021. As part of the final audit team, you, together with other team members, have been instructed to attend a briefing meeting as part of the planning of the final audit of Dunlop Ltd year-end financial statements. REQUIRED: (a) In preparation for the final audit of Dunlop Ltd financial statements for the year ending 31 July 2021, explain the details the auditors need to carry out. (b) In the planning process for the final audit of the financial statements, state five (5) matters that should be discussed at the audit brief meeting.
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