Question 4

You are the audit manager in charge of auditing the accounts of Jamieson Ltd.Materiality for the audit has been set at $250,000.The balance date was 30 June 2020.It is the 18^thof August 2020 and you are at the client's premises to undertake the audit.Depreciation expense was been calculated by the client as $3,350,000.

Required

a)Explain howyouwould verify this balance using analytical procedures.

[2 marks]

b)What verification work do you need to perform on the data used in these analytical procedures?

[4 marks]

c)Howmuch reliance wouldyouplace on the results from your analyticalprocedures?Include in your answer appropriate justifications.

[4marks]