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You are a part of the team responsible for planning the A2B Australia Ltd(ASX code -A2B), a company providing personal transport solutions, audit engagement for 2020. You are required to gather relevant background information and make a report for a meeting with your audit seniors. Assume that this is the first time that the audit will be conducted by your audit firm for this client.
Your report must address the following issues:
Question 1: Based on your risk analysis and understanding of A2B and its environment,list and explain three accounts that could be at risk of material misstatements. You also need to identify the key assertion at risk for each identified account.
Question 2: Identify an appropriate base and set planning materiality for A2B. Explain why you have chosen this base and the percentage you have used.
Question 3: Lately A2B acquired Gold Coast Cabs(fleet of approximately 400 taxis) to further advances its strategy of offering quality services on a national basis. How will this acquisition affect your 202 0audit plan for A2B? Your answer should be supported by at least four factors.
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