Reference no: EM133179510
Question - You are the audit senior at Marvel & Co, Chartered Accountants. Marvel & Co are a reputable professional accounting firm that provides auditing, taxation and advisory services. The firm's main practice is located in Petaling Jaya and it has branch offices in Penang, Johor Baharu, Kuantan, Kota Bharu, Kota Kinabalu and Kuching. The clients are mostly small and mid-sized companies. Since the firm joined the Consortium of Accounting Practices, LLP (CAP) five years ago, the firm witnessed a growth in revenue based on referrals from fellow members of CAP in other countries. CAP is an international firm of accountants based in Zurich with member firms located in more than 120 countries, providing accounting, auditing, taxation and advisory services to clients from various industries. Being a member firm of CAP, Marvel & Co have benefitted in terms of technical support, international affiliation and recognition as well as client referrals among member firms. As a result, the firm's clientele includes companies that are listed on the stock exchange of Bursa Malaysia.
Marvel & Co have recently been appointed to provide statutory audit services to a company listed on Bursa Malaysia. This is a new audit client, and your team is assigned to this new audit engagement. Your immediate task is to plan for the audit and prepare an Audit Planning Memorandum for the forthcoming financial year-end. Your team is responsible for gathering, analyzing and summarizing information about the new client that is necessary to evaluate your client's business risk and the risk of material misstatement, based on the information obtained from official company sources, external literature and public domain (e.g. analyst reports, reputable news sources, etc.).
Required -
1. Significant corporate exercises, if any, that may have an impact on the audit.
2. Conclude with an assessment of the company's business risks. Where possible, link your findings in this section with the analysis in understanding the entity and its environment, including its internal control about the company's business and general environment.