(b) Geranium Co
(i) Quality of audit work
– Determine that Geranium Co is a significant component
– Not sufficient to perform analytical review only for a significant component
– Audit evidence is insufficient to support group audit opinion
– Understanding of the component auditor should have been obtained
(ii) Further actions or procedures
– Obtain understanding of independence, competence and regulatory framework of Fern & Co
– Liaise with Fern & Co in order to:
– Obtain their working papers for review
– Understand their risk assessment procedures and responses to risks identified
– Plan further audit procedures if considered necessary
Maximum 7