依据《特种设备安全监察条例》的规定，特种设备在投入使用前或者投入使用后30日内，特种设备使用单位

(c) Describe the examination procedures you should use to verify Cusiter Co’s prospective financial information.

(9 marks)

(c) Explain the extent to which you should plan to place reliance on analytical procedures as audit evidence.

(6 marks)

(b) Describe the principal audit procedures to be carried out in respect of the following:

(i) The measurement of the share-based payment expense; (6 marks)

(c) (i) Identify and describe FOUR quality control procedures that are applicable to the individual audit

engagement; and (8 marks)

(ii) Recommend further audit procedures that should be carried out. (4 marks)

(i) Describe FIVE types of procedures for obtaining audit evidence; and

(ii) For each type of procedure, describe an example relevant to the audit of BANK balances.

Note: The total marks will be split equally between each part. (10 marks)

(b) Illustrate how you might use analytical procedures to provide audit evidence and reduce the level of detailed

substantive procedures. (7 marks)

(a) ISA 300 Planning an Audit of Financial Statements provides guidance to auditors. Planning an audit involves establishing the overall audit strategy for the engagement and developing an audit plan. Adequate planning benefits the audit of financial statements in several ways.

Required:

Explain the importance of audit planning. (5 marks)

(b) You are the audit senior in charge of the audit of Swandive Co (Swandive), and have been informed by your audit manager that during the year a fraud occurred at the client. A payroll clerk set up fictitious employees and the wages were paid into the clerk’s own bank account. This clerk has subsequently left the company, but the audit manager is concerned that additional frauds have taken place in the wages department.

Required:

Describe procedures which should be undertaken during the audit of wages as a result of the manager’s assessment of the increased risk of fraud. (5 marks)

(b) Describe the principal matters that should be included in your firm’s submission to provide internal audit

services to RBG. (10 marks)