What may be the possible sources of obtaining information in respect of client’s business for the purpose of preparation of an audit plan?

2. What is a planning memorandum and what information should it contain?

3. Describe the audit risks and explain the auditor’s response to each risk in planning the audit of LULU Ltd

4. Discuss the following audit approaches.

(i) Balance sheet audit approach (ii) Audit risk approaches (iii) Business risk approach.

5. Under what circumstances the auditor should not accept an audit engagement?

6. Enumerate some contents of the audit engagement letter.