CH1 reintroduction to A&A

Question 1

Audit thresholds for no audit

Answer 1

2 out of three of:

<50 EEs
<10.5 m turnover
< 5.1m assets

Question 2

Audit objectives

Answer 2

1. To gain reasonable assurance that the FS are free from MM due to error or fraud
2. To express an opinion on whether the FS have been prepared in accordance with the reporting framework

Question 3

Three types of engagement

Answer 3

1. Audit (AP, enquiry, inspection, observation, recalculation, re-performance, external confirmation, written representation)
2. Other:
   - Review of FS (inquiry, AP)
   - PFI (assessment of assumptions, re-computation, written representations)