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You are an audit partner in Courts & Sons, a firm of certified practicing accountant. For a number of years you have been partner in charge of Roma Ltd, a firm that imports and distributes coffee machines and other related products. You have no problem with the audit in the past. Roma’s family financial year ends on 31 December. This year, the owners of Roma ask that the audit be completed by the 15th February next year because Roma’s parent company in Italy requires the accounts for consolidation purposes. You do not believe you will have time to perform all of the audit fieldwork during January. An alternative would be for you to plan the audit so a considerable amount of the substantive testing is performed during the interim audit of Aroma in November. This testing would be on balances at 31st October. 2 months before the year end.
Required;
Explain what you should do to ensure that balances at 31st December are fairly stated when much of the work is performed on balances at 31st October.
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