You are planning the audit of Budget Pty Ltd, which is a subsidiary of Premium Ltd. It was established to provide the group with access to the growing bu wine glut and has sustained significant losses and has a negative cash flow. The CEO of Budget Pty Ltd, Anne Hale has indicated that there is nothing to worry about as Premium Ltd has signed an agreement to support the compa Budget Pty Ltd has an internal audit function that is attached to the accounting and finance division and reports directly to the finance director in his cap During your review of internal audit, you have noted the following matters: (1) The staff of the internal audit function changed significantly during the year. The division employed three new staff to undertake the testing of the finan concentrated on the performance auditing schedule of the internal audit function. The new staff had no previous auditor accounting experience. (10) The work that has been documented appears to be quite thorough and competent. However, for some of the audit tests prescribed the staff have not the audit program and noted that the test has been satisfactorily performed. Required: a. Outline your assessment of the appropriateness of the going concern basis for Budget Pty Ltd. Justify your assessment (2 marks) b. Indicate three (3) audit procedures that you would undertake to confirm your assessment in (a) above. (6 marks) c. What factors do external auditors generally consider before determining whether the work of the internal audit function can be relied upon for the pu d. Based on the information in the question above, provide your assessment as to whether the external auditor can rely on the work of internal audit. e, is the external auditor's responsibility for the audit opinion expressed reduced when the external auditor uses the work of the internal audit function Total: 18 Marks For the toolbar You are planning the audit of Budget Pty Ltd, which is a subsidiary of Premium Ltd. It was established to provide the group with access to the growing bu wine glut and has sustained significant losses and has a negative cash flow. The CEO of Budget Pty Ltd, Anne Hale has indicated that there is nothing to worry about as Premium Ltd has signed an agreement to support the compa Budget Pty Ltd has an internal audit function that is attached to the accounting and finance division and reports directly to the finance director in his cap During your review of internal audit, you have noted the following matters: (1) The staff of the internal audit function changed significantly during the year. The division employed three new staff to undertake the testing of the finan concentrated on the performance auditing schedule of the internal audit function. The new staff had no previous auditor accounting experience. (10) The work that has been documented appears to be quite thorough and competent. However, for some of the audit tests prescribed the staff have not the audit program and noted that the test has been satisfactorily performed. Required: a. Outline your assessment of the appropriateness of the going concern basis for Budget Pty Ltd. Justify your assessment (2 marks) b. Indicate three (3) audit procedures that you would undertake to confirm your assessment in (a) above. (6 marks) c. What factors do external auditors generally consider before determining whether the work of the internal audit function can be relied upon for the pu d. Based on the information in the question above, provide your assessment as to whether the external auditor can rely on the work of internal audit. e, is the external auditor's responsibility for the audit opinion expressed reduced when the external auditor uses the work of the internal audit function Total: 18 Marks For the toolbar