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Kim Smith.
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Noah098
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It is 1 July 20X5. You are an audit supervisor of Brooklyn & Co and are planning the audit of Harlem Co for the year ending 30 September 20X5.
maam the question begins with this line. I am confused with respect to the relevance of this line, is there any specific reason why they tell us that “today is 1 july 20X5”? Are they trying to tell us that this is an interim audit? And so are we expected to write different response/procedure than usual yr end audit?
Kim Smith
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It’s to tell you that you are planning before the y/e – rather than after.
If it was after the y/e you couldn’t plan a y/e inventory count or an external confirmation of receivables because it would be too late!
Audit planning is an ongoing process that will start during the year – that doesn’t mean it’s “an interim audit” because you’re only planning – not doing any “fieldwork”. If before the y/e there is still time to plan to perform ToCs in the 3 months before the y/e – etc.
Noah098
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