QUESTION $5$

$(15$ marks$)$

You have been the audit partner in charge of the audit of Mr Lawn $($Pty$)$ Ltd for the past seven years.

Mr Lawn $($Pty$)$ Ltd has got branches all over Namibia and is a retailer in lawnmowers and other

gardening equipment. All shares in the company are held a company listed on the Namibian Stock

Exchange. You relied on other auditors to perform test of controls and substantive procedures on

your behalf at the branches situated outside Windhoek. You review these auditors' appointments

annually, especially their competence and independence, and you provide them with the necessary

audit programmes. The other auditors provide you with a written summary of their findings, based

on the audit procedures performed by them, in the form of a questionnaire drawn up by you.

Your audit clerks have just completed the final audit field work of Mr Lawn $($Pty$)$ Ltd for the

$28$ February $2017$ financial year. They handed you the current audit file to enable you to carry out

the overall review of the financial information, to evaluate the audit evidence obtained and to

conclude on fair presentation.

Your audit clerks have performed little work on the management's going concern assessment.

Management concluded that the company will continue as a going concern in the foresecable future,

based on the fact that a Mr Lawn $($Pty$)$ Ltd$\text{'}$s holding company subordinated its loan to Mr Lawn.

The lawn is five times the audit's materiality figure, and when disregarded, results in Mr Lawn's

assets exceeding its liabilities.

YOU ARE REQUIRED TO:

Describe the audit procedures which you still must perform during the finalization phase of this audit.

Your answer should deal with the following subheadings:

$5\mathrm{.}1$ Reliance on the other auditors

$5\mathrm{.}2$ Subsequent events

$5\mathrm{.}3$ Final analytical procedures & review of financial information