You will be allocated a company quoted on the Alternative Investment Market (AIM) on the UK stock exchange. You should obtain, or download a copy of, the companys last annual report containing audited financial statements.
A. From the financial statements, the annual report and other sources, and using appropriate auditing procedures, identify THREE areas of heightened audit risk relating to the audit of this company this year. Explain in detail, using quantitative and qualitative analysis, why you consider these to be areas of increased audit risk.
(50%)
B. In relation to ONE of the areas selected in Part A identify in detail, and explain the reasons for, FIVE substantive audit procedures you would carry out in attempting to reduce audit risk to an acceptably low level.
(50%)This assignment has 3 areas about the risks; one of three is the most important and should provide detailed information.
Explain why this risk area is the most important.?
The words of part A&B better to be the same. There should be some calculation in part A.
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