The following scenario relates to questions 6 – 10

You are the audit senior for the audit of Selfridge Co. Selfridge manufacturers kites which it sells via
its website directly to the customers. Selfridge has a year-end of 31 December and you are currently
planning the audit.

The following notes were taken by the audit manager during the planning meeting with the finance
director of Selfridge.

In October the financial controller of Selfridge was dismissed. He had been employed by the company
for over 20 years, and he has threatened to sue the company for unfair dismissal. The role of financial
controller has not yet been filled and so his tasks have been shared between the existing financial
department team. In addition, the purchase ledger supervisor left in August and a replacement has only
been appointed in the last week. However, for this period no supplier statement reconciliation or
purchase ledger control account reconciliation were performed.

As part of the planning process you intend to perform analytical procedures using the latest management
accounts.