It is the start of Covid and you are working for CVD Auditors. Your firm has just acquired a new client in the building industry - Devine Constructs. You are very unhappy by the amount of training the audit Partner is giving you as you are ready to get into it straight away. You can't understand why the partner is spending so much time talking to the audit client staff and asking you to accompany her around the warehouse premises. On your break, the audit partner asks you to create a spreadsheet of the clients previous financial report and unaudited interim data. Required

(a) What evidence is being gathered in the above discussion? (3 marks)

(b) Explain what work is being done with the spreadsheets of financial data and why it is relevant to all stages of the audit? (5 marks)