You were registered with ICAN and IRBA last year and opened your own audit firm earlier this year. Shortly after opening your audit firm, you appointed five audit staff members who passed the national senior certificate examinations at the end of last year. These staff members plan to register with NUST todo an accounting degree next year.
For the first months of your firm’s existence, monthly accounting assignments for clients generated the firm’s income. In July you were contacted by the managing director of Outdoors Limited who offered you the audit engagement of the company for the financial year that had just ended on 30 June, on condition that you issue your auditor’s report by 31 August. He told you that the company was started in the previous year, has 30 shareholders and offers a wide range of outdoor adventures to school and business groups. You accepted the appointment and issued an engagement letter in which you stated that the audit report would be issued by 31 August Shortly after you accepted the audit engagement, you were involved in a severe car accident that saw you hospitalised for six weeks. In the third week in hospital you had your staff call in and held a meeting with them from your hospital bed. You instructed them to ensure that all the audit firm’s clients remain content with the service they receive as you had no medical insurance and needed the fee income to pay for your medical  expenses. You instructed your staff to work overtime as needed and allocated two of them to the audit of outdoors limited and the other three to the monthly accounting assignments. .
You advised the two staff members responsible for the audit of outdoors Limited to use – an example audit programme that you received when you attended the previous year’s ICAN audit update as the basis for the audit.
You were discharged from the hospital on 28 August and went straight to your audit firm’s offices. You immediately called a meeting with the two staff members who conducted the audit of Outdoors Limited. At the meeting, they provided you with the signed-off audit’ program and you held brief discussions with them to establish exactly what type an auditor’s report is based on the example of an unmodified report contained in ISA 700. Thennext day you signed the auditor’s report and had it delivered to Outdoors Limited.
Required:
(a) List any requirements related to the conduct of an audit in accordance with ISA 200
That appears not to have been met on the audit of Outdoor Limited (8)
(b) For each of the requirements identified in (a) give a full explanation of its relevance
to the conduct of an audit.