AUDIT CURRENT FILE -MIGHTY MINING LTD
AUDIT TASKS:
1. ACCEPTANCE DECISION - AUDIT OF MIGHTY MINING LTD 2018
- Assess whether it is ethical for BMS to accept the audit engagement of MML for 2018. Refer to APES110 (2017 version) and determine the implications and make appropriate recommendations in relation to the audit acceptance decision for BMS in the Audit Current File - MMLprovided on Blackboard under assessment>Group Project. The two workpapers to complete for this task are:
AE1 - Engagement Issues (Review) Workpaper to report your findings to the BMS partners
AE1.1- Engagement Ethical Issues Worksheet critically analysing the key ethical issues and making recommendations for resolution
2. PLANNING THE AUDIT OF MIGHTY MINING LTD 2018
Based on the implementation of your group's analysis and ethical recommendations, BMS agree to accept the audit of the financial statements as at 30 June 2018. Bruce(Audit Engagement Manager)starts planning the audit by completing a detailed analysis of the final MML trial balance, performing an initial analytical review, and preparing for the team planning meeting.
Your project group has been assigned to work withBruce's audit team. Bruce,together with Isabella, Hudson and your group (3 new graduates) are about to start work on the audit of MML for the year ending 30 June 2018.This is a new audit for this firm, however, the previous firm has provided their workpapers and have issued an unmodified opinion for each year. The new Corporate Secretary of MML is the previous audit senior of BMS now working at MML.
Bruce, Isabella and the Audit Engagement Partner Thomas Moore have had an initial meetingwith the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) of MMLand have provided the audit team with the following information from their meeting:
- Mighty MiningLtd Comparative Trial Balance
- Meeting notes taken at discussions with Mighty Mining Ltd Senior Management
The Audit Engagement Manager has invited the entire audit team to a planning brainstorming meeting in two weeks to discuss:
- The potential audit risk areas for the audit engagement for 2018
- Determining an agreed overall audit materiality assessment
Attachment:- Project Instructions.rar