Health Ltd has an internal audit unit they are currently being Audited by their External Auditors in accordance with the relevant auditing stands the external auditor and as part of your work as external auditor you are reviewing the non-current assets audit programme of the internal auditors and notice that the basis of their testing is a representative sample of purchase invoices. They use this to test entries in the non-current assets register and the updating movements on the annual budget.

Required:

(a) Explain why this is not a good test for completeness

B) For each of the sources of audit evidence identified below, provide FOUR practical examples of how members of your audit team may use such evidence to support their audit conclusions in respect of the final audit Health Ltds financial statements for the year ending 31 July 2020.

(i) Events after the balance sheet date;

(ii) Satisfactory internal control procedures;

iii) Written confirmation from third parties.