Question 1. Von Forell Ltdnegligence 1000 words

Von Forell Ltd (Von Forell) is an international freight forwarding company, with the group head office based in Melbourne, Victoria. It has subsidiary offices in Brisbane, China, the Netherlands, New Zealand, and the United Kingdom. At 30 June 2021, Von Forell had a reported market value of $3.2billion and $11.7billion revenue. Following the issuance of the final audited financial statements in August 2021, the Board approved dividend payments totalling over $500million. In May 2022, Von Forell was entered into receivership when debt repayments to financiers could not be met. Resulting investigations have identified a number of overstatements in the reported revenue and asset items over multiple years. It is now evident that the company had not been profitable for the last two years. Your audit firm, Quick and Easy Partners, have been responsible for the completion of the financial statement audit for the last ten years.

Required

With reference to relevant audit standards and case law, discuss: a. is it likely that Quick and Easy has been negligent in their audit of Von Forell b. how could the use of Active Data analysis identified overstatements