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Assume that you are an audit senior who has been assigned to the audit of Australian Pharmaceutical Industries Limited (ASX code API). Your audit team is responsible for planning the Australian Pharmaceutical Industries Limited audit engagement for the year ended 31 August 2017. You have been instructed by the engagement partner to gather the relevant background information about the company as part of the procedures to obtain an understanding of Australian Pharmaceutical Industries Limited and its environment
Based on Auditing Standard ISA 315 and the information gathered and the understanding of the client and its environment
List and explain which would impact on the audit of Australian Pharmaceutical Industries Limited. For each of the key audit risks identified, and explain the at risk. The risks must be specific and relevant to the context of the audit of Australian Pharmaceutical Industries Limited. Each of the risks needs to be clearly elaborated.
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