Cloud 9 Audit Case Study Required Task 2.1 Using the 30 September 2017 trial balance (in the spreadsheet planning materiality and include the justification for the basis tha calculation. Use the spreadsheet Task 2-1 tab for this purpose. Appendix A), calculate t you have used for your Part 2 Analytical Procedures The trial balance for Cloud 9 as at September 2016 is included in the spreadsheet Appen Note the following when analysing the company The classification between current and non-current assets and liabilities are the 31 December 2017 balance shet; Where a ratio requires an average balance and the prior year is not available, current year only: Items of revenue and expense in the trial balance for September 2017 shou annualised where appropriate. Required Task 2.2 Using the spreadsheet tab Task 2-2, answer the following questions based on the information presented for Cloud 9 in Appendix A t (a) Using analytical procedures and the information provided in Appendix B, perform an analysis of Cloud 9's financial position and its business risks. Discuss the ratios indicating a significant or an unexpected fluctuation. Which specific areas do you believe should receive special emphasis during your audit? Consider your discussion of the analytical procedures resalts as well as your preliminary estimate of materiality. Prepare a memorandum to Suzie Pickering outlining potential problem areas (that is, where possible material misstatements in the financial report exist) and any other special concerns (for example, going concern). (b) Cloud 9 Audit Case Study Required Task 2.1 Using the 30 September 2017 trial balance (in the spreadsheet planning materiality and include the justification for the basis tha calculation. Use the spreadsheet Task 2-1 tab for this purpose. Appendix A), calculate t you have used for your Part 2 Analytical Procedures The trial balance for Cloud 9 as at September 2016 is included in the spreadsheet Appen Note the following when analysing the company The classification between current and non-current assets and liabilities are the 31 December 2017 balance shet; Where a ratio requires an average balance and the prior year is not available, current year only: Items of revenue and expense in the trial balance for September 2017 shou annualised where appropriate. Required Task 2.2 Using the spreadsheet tab Task 2-2, answer the following questions based on the information presented for Cloud 9 in Appendix A t (a) Using analytical procedures and the information provided in Appendix B, perform an analysis of Cloud 9's financial position and its business risks. Discuss the ratios indicating a significant or an unexpected fluctuation. Which specific areas do you believe should receive special emphasis during your audit? Consider your discussion of the analytical procedures resalts as well as your preliminary estimate of materiality. Prepare a memorandum to Suzie Pickering outlining potential problem areas (that is, where possible material misstatements in the financial report exist) and any other special concerns (for example, going concern). (b)
