ExpertACCA · Question 04 · Audit framework and regulation
CASE 1: NEXUSCLOUD LTD
NexusCloud Ltd is a rapidly growing SaaS (Software as a Service) technology startup. You are an audit manager at TechAudit LLP. NexusCloud is preparing for an IPO and has requested TechAudit to provide both the statutory audit and IT system design services for their new revenue recognition platform. The audit committee currently consists of the CEO, the CFO, and one independent non-executive director. The engagement partner has just rotated onto the audit after the previous partner served for 7 years.
As the audit manager, you are reviewing the audit working papers regarding capitalized development costs. Which of the following is the primary purpose of this review?
CASE 1: NEXUSCLOUD LTD
NexusCloud Ltd is a rapidly growing SaaS (Software as a Service) technology startup. You are an audit manager at TechAudit LLP. NexusCloud is preparing for an IPO and has requested TechAudit to provide both the statutory audit and IT system design services for their new revenue recognition platform. The audit committee currently consists of the CEO, the CFO, and one independent non-executive director. The engagement partner has just rotated onto the audit after the previous partner served for 7 years.
As the audit manager, you are reviewing the audit working papers regarding capitalized development costs. Which of the following is the primary purpose of this review?
Answer options:
To ensure the audit was completed within the budgeted time.
To confirm that sufficient appropriate audit evidence has been obtained to support the audit opinion.
To guarantee that no fraud has occurred within the capitalized development costs.
To provide training to the junior audit staff who prepared the working papers.
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