HI6026: Double Ink Printers Ltd - Case Study - Accounting Assignment

Accounting Assignment:

Case Study: You are a senior manager with Stewart and Kathy and you have been approached to undertake the audit of Double Ink Printers Ltd (DIPL). 2017DIPL print books, magazines and advertising materials for the publishing, educational and advertising industries on a print-on- demand basis. Printing on demand means that publishers can print the exact quantities ordered by retail outlets, rather than estimate in advance how many books are required and often printing too few or too many. The average printing turnaround time for DIPL is two business days for small orders and five to ten business days for large orders. In addition, five years ago, DIPL further expanded its earnings base by having publisher’s titles available as searchable ‘e-books’ that could be downloaded directly by readers from DIPL’s website. Questions: 1) Based on the background information contained in the case, explain whether it will be necessary to use the work of an expert in the audit of DIPL. 2) (a) Referring to the background information contained in the case, identify five factors that would influence your determination of the preliminary figure for overall materiality for the 2017 audit of DIPL. (b) Explain why the factors identified in (a) above are relevant to your calculation of the preliminary figure for overall materiality. (c) Describe how the factors identified in (a) above will influence your preliminary figure for overall materiality in the audit planning process.