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This assignment used the Case Study Crest Outfitters in Moroney, Campbell and Hamilton (2020), Auditing: a practical approach, 4e, John Wiley & Sons, Australia which
This assignment used the Case Study Crest Outfitters in Moroney, Campbell and Hamilton (2020), Auditing: a practical approach, 4e, John Wiley & Sons, Australia which have been discussed in Tutorials throughout the semester. For the purposes of this assignment, you are working as a member of Audit Tek audit team who audits Crest Outfitters for the financial year ending 30 June 2022. Questions: 1. Write a letter addressed to Felix Wong, the Audit Partner of Audit Tek, highlighting the impact of COVID-19 on the audit of Crest Outfitters. In your letter, discuss how COVID-19 can affect: (a) Two income statement accounts and related assertions (5 marks) (b) Decision regarding the audit procedures for the identified account balances and assertions (5 marks) 2. Prepare a detailed key audit matters section which includes TWO (2) key audit matters and audit procedures resulting from the control risk assessment of Crest Outfitters. Please answer in the tabular format of three columns (1) KAM title, (2) KAM detailed description, (3) Audit procedures. (5 marks) 3. Discuss the advantages and disadvantages of the auditor explicitly confirming that no prohibited non- audit services have been provided to Crest Outfitters in the auditor's independence declaration in the audit report. Refer to the nature of prohibited non-audit services in your answer. (7 marks)
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