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Max Crowe is a junior auditor who has just started with the team conducting the audit of a new client in the construction industry. Susan

Max Crowe is a junior auditor who has just started with the team conducting the audit of a new client in the construction industry. Susan Wong is trying to teach Max about the benefits of getting to know the client. Susan is also trying to help Max develop experience in picking up subtle signals about the clients problems and what the client might be trying to hide from the auditor.

Max is getting a little frustrated with the time he is required to spend in training. He cant understand why Susan is spending so much time talking to the clients staff and touring the various construction sites and offices. When Susan is not doing this, she is working on a spreadsheet of the clients previous financial report and unaudited interim data. Max wants to know when they are going to do some real work and start gathering audit evidence. Susan tells Max that they have already started.

Required

(a) Discuss Susans comment that they have already started the audit. What evidence have they gathered so far? (2 marks)

(b) Explain what work is being done with the spreadsheets of financial data. Give some specific examples for this client. How is this type of work relevant to all stages of the audit? (2 marks)

(c) When Susan is touring the clients premises, she is taking notes of equipment and furniture items she sees, especially anything that looks either newly purchased or older and unused. Why might she be doing this? Explain. (4 marks

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