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Memorandum
Assume that you are the engagement manager conducting the financial statement audit of your selected company. You are required to prepare a planning memorandum.
You can assume that the financial statements included in the annual report are not yet audited and you are responsible for planning the audit of these statements. Use the information provided in the company's Annual Report and other publicly documents relevant to your planning process. State any assumptions you find it necessary to make. You are not to contact the organization or interview people for this project. You also should not contact the actual auditors as they will need to keep all the client information confidential.
The memo should be no more than two pages
The memo should include:
· Risk assessment;· Business information;· Review of risk areas;· Approach;· Materiality;· Preliminaryanalytics; and · Suggested Procedures.
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