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Question 4ii

Kyanite Pizzas Co (Kyanite) operates a large chain of fast food restaurants. You are an audit supervisor of Jasper & Co and are currently preparing the audit programmes for the audit of Kyanite’s financial statements for the year ended 31 March 2016. You are reviewing the notes of last week’s meeting between the audit manager and finance director where two material issues were discussed.

(ii) Equity
The refurbishment was financed via a share issue in April 2015 at a premium of $1·6 million. (4 marks)

Required:
Describe substantive procedures you should perform to obtain sufficient and appropriate audit evidence in relation to the above two matters.

Note: The mark allocation is shown against each of the two matters above. (10 marks)