ONE
• Critically Evaluate the risk-based approach to external audit to the assessment of audit risk in planning the overall audit programme with particular reference to the audit of Sports Direct International plc.
TWO
• Identify those features of Sports Direct International plc’s results for 2015 – 2017, incl. the interim results to October 2016, which might indicate to you as the external auditor that the company was facing going concern problems.
• Considering above, Critically Evaluate and Analyse the analytical procedures (Source – ISA 520) using relevant accounting ratios to identify potential areas of high audit risk.
(40%)
THREE
• Critically Evaluate any qualitative factors or information in the annual reports and accounts for Sports Direct International plc for 2016/ 17, that may indicate uncertainties about the appropriateness of the going concern basis, that you as the external auditor would consider that might suggest that the company would be able to continue in business for the foreseeable future.
