Fantasy Fashions Ltd (Fantasy) is a private company manufacturing clothes which it sells wholesale. It has few accounting systems, so the audit by Pinkerton & Co. tends to be largely substantive. The accounts are prepared by Paul Stevens, who is accurate and conscientious, but tends to leave any accounting policy decisions to Jim Green, the managing director, a much more forceful character...............

QUESTIONS FOR DISCUSSION
1. What further audit work, if any, should Pinkerton & Co carry out before drafting their audit report?
2. What should the wording of the audit report be and why?