Suppose that you are audit senior in an accounting firm. Your firm has recently won an audit for company. Though, your firm doesn’t have any other clients that operate in this industry. Your audit partner is concerned regarding his lack of knowledge of the industry the company is operating in. He is aware of the needs of ASA 315 (par 25 and 26).

Your audit partner asks you to make a memo on the ‘state of the company’s industry’ and related risk factors.

Required:

i) Make a list of all helpful sources which you can use to get the required knowledge.

ii) Make a memo to the audit partner on the ‘state of the company’s industry’ and related risk factors.

iii) Suggested five most significant general balance-related or transaction-related audit objectives based on your finding of risk factors.

General need:

The length of the writing/essay should not exceed 1000 words. Words in Bibliography or Reference Lists part are not comprised in the word count.