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You are the audit senior on the audit of Better Built Ltd, a medium-sized office furniture manufacturer, and you have just completed your review of its internal controls for your audit for the year ended 30 June 2018. Based on your review, you have concluded that Better Built's internal control is excellent-in fact, it is one of the best systems you have seen since you began auditing. As a result, the audit manager has suggested that as the internal control is so good, you test the controls and if they prove to be effective as expected, you rely solely on these controls to gain reasonable assurance that the financial information is fairly stated.
REQUIRED
Problem 1: What do you think about the audit manager's suggestion?
Financial Statement Analysis and Preparation
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