Q1. Perform the planning analytical review for the financial statements of Matty Kitchens, analyzing the key movements. Include supporting calculations.
Q2. Using the notes that you took on the company's performance, identify the audit risks and explain how each audit risk could result in a material misstatement in the financial statements. Design the audit approach for each significant audit risk identified.
Q3. Calculate planning materiality for the 20X3 fiscal year-end audit. Provide both quantitative and qualitative analysis supporting your figure for preliminary materiality.
Q4. Evaluate the audit work done by the audit junior on the weekly inventory counts and outline additional procedures that should be performed by the audit team in future inventory counts.
Q5. Prepare the property, plant and equipment (PPE) audit program that will be used by AMS Accounting for the March 31, 20X3, fiscal year-end audit of Matty Kitchens.
Q6. Discuss the importance of documentation in the audit file and identify what parts of the audit file require documentation.
Q7. Assume the 20X3 fiscal year-end audit of Matty Kitchens is completed and that AMS Accounting has determined that the financial statements of Matty Kitchens are presented fairly, in all material respects, except for the area of obligations under lease agreements. AMS Accounting was unable to obtain any audit evidence to verify the value recorded by Matty Kitchens for the obligations under lease agreements as of March 31, 20X3, because the lease contracts were destroyed in a fire. The possible effects of AMS Accounting's inability to obtain assurance over these contracts are material but not pervasive to the financial statements. Draft the expected audit report that will be issued by AMS Accounting for this engagement. Assume that the financial statements of Matty Kitchens are prepared under one of the two general purpose accounting frameworks used in Canada.