Konekt Limited Audit: Planning for Financial Statement Audit

This assignment presents an audit plan for Konekt Limited, a listed company, following an engagement letter and preliminary audit. It identifies key accounting balances like debtor balances, cash and cash equivalents, intangible assets, creditors, and deferred revenue that require focus during the audit. The report assesses the risk of material misstatements in these accounts and discusses planning materiality according to applicable auditing standards such as ASA 210, ASA 220, ASA 230, and ASA 250. It highlights potential gaps in internal controls due to the company's outsourcing business model and emphasizes the importance of verifying compliance with accounting standards and corporate governance frameworks. The analysis includes a comparison of financial data from 2017 and 2018, revealing significant changes in various accounts that warrant further investigation during the audit process. The report concludes with recommendations for the senior audit manager to design an effective audit plan based on these findings.