[marthew]

Thank you Ken, just realized that I totally skipped those two paragraphs at the top for task 1.

Regards,
Marthew

[marthew]

Thank you Stephen, very much appreciated.

[marthew]

Thank you.

[marthew]

Hello Kim,

I am sorry I do not understand the second paragraph of your answer.

If the carrying value of machine is $1.4m (ie. below current year materiality level $1.5m), when determine whether the machine is material or not why we need to consider the cost ($1.6m) of the machine being purchased 2 years ago?

Thank you.

Regards,
Marthew

[marthew]

Hello Kim,

Audit evidence as per the printed solution includes the below:

A schedule analysing the total returns received following the year end. This schedule should also have been analytically reviewed in comparison to the same period in previous years to identify whether returns levels were consistent.

Can I change it to the below?

A schedule analysing the total returns received following the year end. This schedule should also have been analytically reviewed in comparison to the same period of the forecast return to identify whether the actual return level is consistent with the forecast return level for the same period.

I am so sorry to confuse you, and I think I am a bit confused now.

Regards,
Marthew

[marthew]

Hello Kim,

Thanks for the clarification.

Regarding the self-review threat, does it mean that the audit partner sitting in the audit committee is going to review the independence of the audit firm where the audit partner belongs to?

How this is going to affect the independence of the audit firm?

Thank you.

Regards,
Marthew

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