You are an audit manager in an audit firm with ten offices and 250 staff. Your firm is the auditor of Siddiqui, a chain of supermarkets. Your firm has been the auditor of this client for many years. All of the planning work and tests of control have been completed for Siddiqui for the year ended 31 December 20X3. Staff are still working on substantive procedures. The company operates a continuous inventory checking system with good records and you have tested this system and will be relying on the records for the yearend figure. The company is intending to invest a substantial amount in opening new stores during the next year and it has been negotiating with both banks and property companies in relation to leases.

Required:

A Describe the objectives of the following and how these objectives will be met in the audit of Siddiqui:

I Overall review of financial statements.

II Review of working papers.

B Describe the:

I auditors responsibilities with regard to subsequent events

II procedures that should be applied during the subsequent events review at Siddiqui.