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Questions from Auditing. please answer all of them. 1) Explain when it may be appropriate to take a combined approach or a substantive approach to
Questions from Auditing. please answer all of them.
1) Explain when it may be appropriate to take a combined approach or a substantive approach to performing the audit. 2) Based on the following scenario, identify which audit approach you would recommend taking during the audit and describe why. Indicate what activities you may need to perform as immediate next steps in your decision or that might support your decision. 1 Scenario: Dream Pillows Ltd (Dream) is a privately owned and operated company by Kenny and Bryce, based in Halifax, NS. Dream is an online service that sells pillows direct to consumers or to major retailers, like Sleep Country, Dream does not hold any inventory and operates by ordering products to fulfill orders when one comes in from a consumer or major retailer. Kenny and Bryce founded Dream in 2019 and fast-forward to 2020, they've just hired your audit firm to perform an audit for its first year-end. During the planning phase, you have inquired with Bryce to understand the accounting department and policies. Bryce explained that while he and Kenny are the sole employees, all of the accounting activities are outsourced to a local CPA, Carly, who manages all of the bookkeeping for Dream. He indicated that if we had any requests for information or evidence that he would work with Carly to gather the evidence. He also provided you with the policies that Dream follows, which you have identified conforms to ASPE and enforces the implementation of strong internal controls. 3) What is the purpose of performing rollforward procedures Step by Step Solution
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