It is 1 July 20X5. You are a manager in the audit department of Squire & Co, a firm of Chartered Certified Accountants, responsible for the audit of the Ryder Group (the Group), which has a financial year ending 30 September 20X5. The Group, a listed entity, operates in the hospitality sector, running restaurants, coffee shops and hotels.

Squire & Co audits the Group consolidated financial statements, and the individual financial statements of each Group company. All companies in the Group use IFRS® Standards as their financial reporting framework.

You are provided with the following exhibits:
1. An email which you have received from Mo Iqbal, the Group audit engagement partner.
2. Background information about the Group’s current structure and business activities.
3. Notes taken at a recent meeting between Mo Iqbal and the Group finance director.
4. Selected financial projections to 30 September 20X5 and comparative financial information.
5. Notes taken by Mo Iqbal during a phone call with a representative of the audit committee.

Required:

Respond to the instructions in the email from the audit engagement partner. (46 marks)

Note: The split of the mark allocation is shown in the partner’s email (Exhibit 1).
Professional marks will be awarded for the presentation and logical flow of the briefing notes and the clarity of the explanations provided. (4 marks)