You are required to:

| March 17, 2019

You are required to: 
a) Draft an audit planning memorandum highlighting: 
i) the legal and other considerations that need to be considered by your firm as the new auditor of Laser Engineering; 
ii) the major risk areas to be addressed in the audit of Laser Engineering for the year ended 31 December, 2017. Give reasons why the identified areas are considered to be high risk. Support your answer by calculation of appropriate ratios and/or comparisons.  The use of Microsoft Excel to calculate ratios is encouraged. 
b) Outline the main audit procedures for each of the risk areas identified in (a). 
c) Use the “Active Data for Excel” add-on to Microsoft Excel to audit the Accounts Receivable balance of Laser Engineering Ltd. as at 31 December, 2017.

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