Abbott & Partners audit firm has audited Pretty Valley Shire council for two years, performing both a statutory audit of the financial reports and a compliance audit for the government department in charge of local councils’ landfill waste disposal sites. In all previous control testing, no exceptions were detected. The junior auditor on the engagement has suggested that no work on internal controls is required because last year’s evidence will be sufficient. Required: Explain why the junior auditor’s suggestion is not appropriate.

On the audit of Megna Ltd. the audit partner on the engagement set the preliminary level of audit materiality at TK. 10 crore. After the partner reviewed the audit senior’s assessment of inherent risk, he decided that the materiality level should be increase to Tk 15 crore.Required: (hint: Audit Risk)1) What is the relationship between materiality and audit risk?2) How will this new level of materiality affect the nature and extent of auditing procedures?

Which of the following is NOT a reason the auditor performs some substantive procedures at an interim audit date? O increase the effectiveness of the overall audit O client may require it for reporting purposes O allow the audit firm to decrease the amount of work during their 'busy season' O increases the efficiency of the year-end audit

You are the partner responsible for quality control in Suta Excellence, A well-known audit firm. You are reviewing the findings from a recent post-issuance (cold) review performed by your firm’s compliance department. The following were identified on a number of audits: Zhetta Company Dr Cletus Agyenim Boateng, Dr Emmanuel T. Asare and Mr Augustine Addo A review of working papers found that some working papers had not been signed off by the team member that had completed the work. Some working papers were not dated, and some did not have a signature confirming they had not been reviewed. Petra Company A mandatory procedure included in the audit plan which required a written representation letter to be obtained, had not been completed. A comment had been added by the audit manager stating that there were no issues requiring a written representation from management. Jantra Company An audit test over purchases required a sample of 60 invoices to be tested. 54 had been tested and found to…