- In terms of ISA 300 - Planning an audit of financial statements, the engagement partner and the key engagement team members must establish the audit strategy and develop the audit plan. Your audit firm has recently been appointed as auditors of Regent Ltd. A listed company. You have been assigned to assist with planning the audit for the June 2020 year. Due to a number of reasons the appointment was only finalized in March and as a result, work has already begun on formulating the overall audit strategy you have ascertained inter alia that: 1. Regent Ltd is engaged in importing sports equipment. 2. Its head office (and one warehouse) is located in Tshwane and it has distribution warehouses in four other major cities 3. The turnover of the company is R900m per annum and the company is consistently profitable 4. There a workforce of employees spread around 5 locations, for example buyers, admin clerks, warehouse personnel 5. The company has an internal audit division which is regarded as very efficient and effective. 6. The companies' systems are all computerized and are resident on a wide area network and local area network. Regents Ltd has many operational automated controls. 7. The company sells to the retail sports trade and has in excess of 8000 debtors. It sells only on credit 8. The reporting deadline is 28 July 2020. 9. The year-end inventory count takes place on either the last or second last Sunday of the financial year but at least seven days before the end of the year, to facilitate the clearing of problems before year end. All inventory is counted at the same time. 10. The board of Regent Ltd is regarded as highly competent and enjoys a good reputation in the business world. Because of the late appointment the audit committee has requested a monthly meeting with the auditors to discuss audit progress commencing with a meeting in April. The engagement partner has requested you give some thought to a preliminary audit strategy for the first audit. You are required to: B. Identify which of the three components of the overall audit strategy, i.e.: scope timing and direction, will be affected by the information given in the question. Give brief reasons for your choice. (27) - In terms of ISA 300 - Planning an audit of financial statements, the engagement partner and the key engagement team members must establish the audit strategy and develop the audit plan. Your audit firm has recently been appointed as auditors of Regent Ltd. A listed company. You have been assigned to assist with planning the audit for the June 2020 year. Due to a number of reasons the appointment was only finalized in March and as a result, work has already begun on formulating the overall audit strategy you have ascertained inter alia that: 1. Regent Ltd is engaged in importing sports equipment. 2. Its head office (and one warehouse) is located in Tshwane and it has distribution warehouses in four other major cities 3. The turnover of the company is R900m per annum and the company is consistently profitable 4. There a workforce of employees spread around 5 locations, for example buyers, admin clerks, warehouse personnel 5. The company has an internal audit division which is regarded as very efficient and effective. 6. The companies' systems are all computerized and are resident on a wide area network and local area network. Regents Ltd has many operational automated controls. 7. The company sells to the retail sports trade and has in excess of 8000 debtors. It sells only on credit 8. The reporting deadline is 28 July 2020. 9. The year-end inventory count takes place on either the last or second last Sunday of the financial year but at least seven days before the end of the year, to facilitate the clearing of problems before year end. All inventory is counted at the same time. 10. The board of Regent Ltd is regarded as highly competent and enjoys a good reputation in the business world. Because of the late appointment the audit committee has requested a monthly meeting with the auditors to discuss audit progress commencing with a meeting in April. The engagement partner has requested you give some thought to a preliminary audit strategy for the first audit. You are required to: B. Identify which of the three components of the overall audit strategy, i.e.: scope timing and direction, will be affected by the information given in the question. Give brief reasons for your choice. (27)