Describe key areas of an audit strategy

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Reference no: EM132591841

Metha restaurant is your new client. New client has 4 restaurants and revenue is $5 million. Most of the items are produced with a shelf-life of 36 hours. The finance director of client informed you that no finished goods are included in the inventory due to immaterial value. Inventory is comprised of raw materials stored in another warehouse.

Metha restaurant renovates its kitchen during the year and a takeaway business recently open to allow customers buy food through a new website. The website is linkes to the finance system, recording sales automatically. The website development costs have been capitalized. It is reported that a customer put food poisoning claim against Metha Restaurant which is on-going and is likely to be settled in the favour of customer.

Tasks Required:

Question 1: Explain audit risks when planning the audit of Metha restaurant and describe an appropriate response for each risk.

Question 2: Describe key areas of an audit strategy

Reference no: EM132591841

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