Transcription of Answers - ACCA Global
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Answers - ACCA Global
AnswersProfessional Level Options Module, Paper P7 (UK)Advanced Audit and Assurance (United Kingdom)December 2013 Answers1 Briefing notesTo: Audit PartnerFrom: Audit ManagerSubject: Planning issues for the Stow Group, year ending 31 December 2013 IntroductionThese briefing notes contain an explanation of the risks of material misstatement to be considered in planning the audit of the StowGroup. The risks which have been explained focus on a restructuring of the Group which has taken place during the has been considered where information permits, and further information which would be useful in planning the audithas also been identified. The briefing notes also contain recommended audit procedures to be performed in respect of the disposalof Broadway Ltd. In addition, the Group finance director s suggestion that our firm makes use of the new subsidiary s internal auditteam when performing our audit has been discussed, along with the ethical implication of the LtdMateriality of Zennor LtdTo evaluate the materiality of Zennor Ltd to the Group, its profit and assets need to be retranslated into.
Consolidation of income and expenses Zennor Ltd was acquired on 1 February 2013 and its income and expenses should have been consolidated from that date.
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