Planning of due dilligence and additional information.

“Q1: Sir, what are matters I should consider before accepting an engagement to conduct a due diligence review?”

Off the top of my head …

Can you do it
Do you want to do it
Is there any conflict
Are you going to receive a reasonable fee
To whom are you reporting
Who will get a copy of your report
Any logistical problems
Any history with the entity on which you are to perform your procedures
Any history with any of the top officials of the entity on which you are to perform your procedures
Are there likely to be any restrictions imposed upon the extent of your enquiries

… but that’s off the top of my head

“Q2: In Q of audit risks when requirement is State additional information required, how should I approach this requirement? What should be my perceptive and reasons answering this requirement?

– imagine that you’re the audit partner and you’ve been presented with a file and a schedule “Points for partner” that lists 3 or 4 really unusual matters that need your attention and resolution before you could reach an informed opinion

Your perspective should be just that – what more information do you really need before you can be expected to reach an opinion. What’s missing? What’s too vague? What needs greater clarification? What needs additional corroborative evidence? What’s stopping you from forming an opinion based on the information already on file?

Need more?

I can’t tell you in detail what additional information you’d need! That depends entirely on the question and what the examiner tells you about existing information

Come on Guddo! You’re a P7 student, just weeks away from qualifying as an accountant competent and qualified enough to audit Google Inc or Microsoft

You should be able to think what additional information you would need in any given situation!