a. Discuss Susan's comment that they have already started the audit. What evidence have they gathered so far? b. Explain what work is being done with the spreadsheets of financial data. Give some specific exam- ples for this client. How is this type of work relevant to different phases of the audit? c. When Susan is touring the client's premises, she is taking notes of equipment and furniture she sees, es- pecially anything that looks either newly purchased or older and unused. Explain why she is doing this. AP5.10 (L04) Moderate Using the work of internal auditors Theobald Inc. has an internal audit department that primarily focuses on audits of the efficiency and effectiveness of its production depart ments. The other main role of the internal audit department is auditing compliance with various govern ment regulations surrounding correct disposal of waste and storage of raw materials at its five factories Theobald's internal audit department is run by Harry Potts, a CPA and a member of the Institute of Interna Auditors. There are three other members of the department, all of whom have experience in performanc auditing and, in addition, have completed industry-run training courses in waste management and har dling dangerous goods. Harry meets regularly with the chief production manager and sends monthly r ports to the CEO and the board of directors. Your initial investigations suggest that Harry is highly regarde within Theobald, and his reports are often discussed at board meetings. In most cases, the board authoriz the actions recommended in Harry's reports with respect to major changes to production and logistics. Required Evaluate the extent of reliance the external auditor should place on the work of the internal audit departm at Theobald Inc. Explain the likely impact of the internal audit department's work on the audit plan. AP5.11 (LO 4) Challenging Research Using a specialist SolarTubeGen is a start-up company the renewable energy sector. The founder of SolarTubeGen, Fritz Herzberg, has developed cutting-edge te nology to convert the energy in the sun's rays to electricity gris novel curstem of mirrors designed to fr