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What are the main problems of first year audit ?
Opening Balances may not be brought forward correctly
Auditor doesnt have a cumulative knowledge and experience in the companyAnything else ?
A LOT of non-recurrent initial exploratory and information-gathering work to be carried out
No existing chemistry with the new client
Potential non-familiarity with the business so a lot of behind-the-scenes preparation work to be carried out
No history between us and the new client so no attendance at the year end stock count, potentially no supporting documentation for ANY of the figures brought forward on last year’s statement of financial position and no full and detailed understanding of the background to any audit report modification (if applicable)
And, as you say, figures may not be accurately brought forward or accounting policies may be not consistently applied
Ok?
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