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Since Donald did not review any of the controls of the company and only focused on the G/L and summarizing data that allready supported the financial statements, he may have missed material errors that the audited company had made.
The Examination Standard
i) Auditor should plan and perform the audit to reduce audit risk to a low level, they should also plan the nature, timing, extent of direction and supervision of team members. Here Donald simply used 2 co-op students to perform the audit in a short period of time. It is clear that enough guideance and direction was given as the audited financial statements did not have supporting notes...
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