QUESTION

You are required to obtain a copy of a financial report for STRATEGIC ENERGY RESOURCES LIMITED for the year ended 30 June 2019. The best way to locate their financial report is to go to their website and download a copy. This will normally be found under Investor Information, Shareholder Information or similar tabs on a companys website.

REQUIRED

1) Identify and explain three key or significant audit matters that were raised in the audit report that may lead to the risk of material misstatement in the financial report . (For every Key audit matter identified, discuss how the auditors responded to each matter raised. You are to discuss your own point of view about each of the key audit or significant matters, how they are important and their impact on the financial reports if not corrected. )

2)Apply analytical procedures to the financial report information of Strategic energy resource limited for at least two years. For this purpose, restrict your procedures to ratio analysis (use at least two ratios each for profitability, solvency, and liquidity).

3) Explain how the results of your analytical procedures in 2) influence your planning decisions for the audit of the company.

4) From the financial statements of Strategic energy resource limited, select two revenue and two expense item from the Statement of Profit or Loss and Other Comprehensive Income, two asset and two liability items and one item from the equity section of the Statement of Financial Position.

For the nine selected items:

a) Identify the key assertion(s) at risk in relation to the balances described for each of these nine selected items in the financial report.

b) Describe the audit procedure(s) you would perform to gather sufficient appropriate audit evidence on each of these assertions to ascertain

the fairness of the value of each of these nine items stated in the financial report.