1. You are required to download the latest annual report published by one of the following institutions:
- Adult Multicultural Education Services
- Centre for Adult Education
2. Using the steps set out in Arens et al. (2010), plan the audit for the entity you have chosen. You must be as specific as possible when developing your audit plan.
3. You have accepted the appointment as auditor and communicated your decision through an engagement letter. The engagement letter includes, among other things, the scope of the audit. The audit fee is $65,000. You are now preparing the audit plan for the audit partner's approval.
Using the steps set out in Arens et al. (2010) develop the audit plan the audit for entity. Your audit plan must include the followings:
1. Executive summary
3. Audit plan with the following headings:
- Understand the client's business and industry
- Assess client business risk
- Perform preliminary analytical procedures
- Set materiality and assess acceptable audit risk and inherent risk
- Understand internal control and assess control risk
- Gather information to assess fraud risk
- Develop overall audit plan and audit program