HI6026 Assessment Questions On Audit, Assurance And Compliance

Question 2 (7 marks)

The audit team is preparing to audit a new client in the toy retail industry. The client imports items from manufacturers in several Asian countries and retails them in a chain of shops located throughout the country.

You have access to the following information for the client:

• prior period financial reports
• anticipated results for the current year
• industry averages.

Required:

Explain how you would use the information to understand your new client.

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