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Question - CASE STUDY Gordon has drafted an audit plan for a new client. The client is Henry Ltd. Henry Ltd earns 60 per cent of its revenue from its restaurant and 40 per cent from catering. Gordon's plan shows that audit time is divided to reflect this revenue pattern (that is, 60 per cent of the audit time is spent on the restaurant business and 40 per cent of the time is spent on the catering business). Gordon believes that the significance of the revenue activities should be the only driver of the audit plan because the client has no related parties and a simple, effective corporate governance structure.
Required - What questions would you have for Gordon before accepting his audit plan?
Discussing the case or legislative history
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