Audit Report
Storyboard Text
- I've been well Roshail. I didn't get to thank you for the watch you got me for Christmas.
- Hi Cindy, how have you, been? Last time I saw you was for Christmas.
- No I understand,. You known from last year's audit that we were doing very well especially we exports. Due to Covid-19, we are facing some difficulties as well.
- Unfortunately this year due to Covid-19, the audit process will slightly be different.
- Business has been going down in the first quarter. We actually had to think about closing down a section of the farm. We had a lot of spolilage due to not being able to export.
- Has the pandemic affected you business?
- The auditors meet their ongoing client. The client and Partner greet each other in a familiar sense which concerns the Senior Auditor regarding Auditor Independence.
- I see.
- The Senior Auditor details how the audit will be different and mainly done offsite. The client raises that they also have had issues this year which raises the issue of going concern for the Audit Team.
- From what I remember, you have internal control systems to record inventor and sales. Has any changes been made to the system?
- Client raises that the sales revenue has decreased due to exports being hard. Their spoilage has increased due to this which increases the Auditor's concern regarding going concern of the company.
- Please start the audit soon as we have many creditors who rely upon the audited financial to contain financing us. Let me know if you need anything further.
- Decreased sales are to be expected. The staff are being paid less due to cuts in working hours leading to them being unsatisfied which increase the risk of fraud as employees have reasons to rationalise fraud.
- However we did not end up having to close down a section as our revenues had increased by lockdown. I think our section managers worked hard to find internal buyers.
- Client maintained very good controls as seen in the last audit so the Audit Team expects a low control risk. But as the controls are now managed by each section and their manager, the Audit Team identifies risk for Fraud.
- Nothing much has changed in terms of our control structure. However due to the pandemic, we have let go of our IT team. The internal controls are now managed by each section's accounting tesm.
- The client leaves after providing access to their internal controls, invoices, director minutes and other audit documents.
- Sure no worries. We will contact you if we require anything further.
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