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(a) Identify four (4) issues (accounting or otherwise) in the above case that may have an impact on the planning of the audit of BHP for the year ending 30th June 2012. (HINT: Students should use initiative in answering this question. Remember auditors are trying to find conditions or events that might give rise to material misstatement. Whilst not necessarily related to BHP, ASA 315 provides some examples of common conditions and events that may indicate the existence of ‘risks of material misstatement'. Please go to pages 301 and 302 of your Auditing Handbook for a list of possible events or conditions that might apply to BHP. Please be warned however that you MUST demonstrate clearly (with substantive research evidence) that an identified issue relates to BHP and the planning of its audit. Inclusion of evidence of research is important. Be sure to use in-text referencing.
(b) State what audit evidence you would gather in assessing the issues identified in part (a) above, for inclusion in the planning strategies for the audit of BHP.
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