Follow the concepts and steps provided in the additional files closely.
In this assignment you are an audit senior that is planning the audit of the financial statements of CINEPLEX
INC. (CGX ticker symbol on the Toronto Stock Exchange) for the year ended December 31, 2014.
CINEPLEX INC. has been a client of your employer, an international public accounting and consulting firm for
many years. The preplanning phase of the audit has been completed and Fyou have accepted the engagement.
All information used to prepare this report should be from PUBLIC sources. State any assumptions you find it
necessary to make.
Prepare a report with the following components:
1. Develop CINEPLEX’S risk profile. When performing analytical procedures, please ensure you tie in the
results of the analytical procedures to the impact on audit procedures (5-6 pages).
2. Determine an overall risk assessment by considering each component of the audit risk model. You may
have to consider the various risks by cycle if applicable (2-3 pages).
3. Set overall planning materiality and support your decision (1 page).
4. Identify “key audit issues” you are concerned with prior to the audit execution and determine their
impact on the key components (cycles) (4-5 pages).
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