Mr Docile reads your memo and decides that he can save much time by relying on the controls of DMC. He sends you out to test the controls. You arrive and ask Mr Diffident about the companys internal controls. He calls in the office manager, Mr Cozener, who pulls a thin dusty manual from the book shelf labelled DMC Trading Ltd Internal Control Manual 1985. You take this to Mr Docile who takes the manual, and states that he can now rely on controls.

Question 6

Required:

(a) Explain the audit strategy Docile and Co will follow based on Mr Dociles decision and the audit risk model. (5 Marks)