Ican 2025 Audit And Assurance Question 1

ARTECO LIMITED Arteco Limited is principally a mail order company, selling goods over the internet. Your firm has been approached to handle the statutory audit of the e-commerce company for the year ended December 31, 2024. Your discussion with the Managing Director of the company and further enquiry have revealed that the: (i) company has been in business for about 5 years; (ii) accounting system operates on an online system with micro computers located throughout the organisation; (iii) company also applies electronic data interchange (EDI) system. This allows electronic transmission of business documents like purchase orders and invoices; (iv) previous auditors left because of disagreement about some disclosures in the financial statements for the previous year; and (v) audited financial statements are needed in the next 3 months by the company’s bankers. The brother-in-law of the Engagement Partner, Mr. Godspower, has just been appointed a Director of Arteco Limited.