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1. Total Time: 300 min. Planning: 100 min. Remaining: 200 min. Intro Go To What is consider-ed “significant” in assessing CB’s liability? Were the audited financial statements materially misstated? Was CB’s income tax advice to GEL deficient? Was the cash flow forecast misleading? Did CB’s work comply with GAAS? (including going concern assessment) Is CB liable? • Professional Standards: • Association • Due Care • Audit Opinion: • Materiality • Assess reasonability of assumptions made in forecast • Re-forecast cash flows based on omissions and new assumptions • Identify accounting issues • Prioritize • address selected issues in-depth • Quantify adjustments • Restate financials • Conclude: materially misstated? • Determine tax advice provided • Assess deficiencies in tax advice • Quantify, if possible • Remember to use if needed in forecast • Was CB’s conduct in line with professional standards? • Contents of the info package properly prepared? • Risk assessment • Audit approach • Specific audit procedures • Going concern • Opinion appropriate? • Conclude on whether standards were met • Address to legal counsel • Define any prevalent accounting terms (CAS, GAAP, ASPE etc.) 10 min. 10 min. 80 min. 10 min. 20 min. 40 min. 20 min. Time Used: 190 min. Time Left to Review: 10 min.