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Question 2 a. In performing an audit of financial statements the auditor should have or obtain knowledge of the bus sufficient to enable the auditor to identify and understand the events, transactions and practices that is auditor's judgment may have sufficient effect on the financial statements, or on the examinations of report. Such knowledge is used by the auditor in assessing inherent and control risks and in determinin nature, timing and extent of audit procedures. Required: Determine the sources from which the auditor could obtain knowledge of the Insurance industry and P Insurance Company Limited, a newly engaged client. (9 marks Question 2 a. In performing an audit of financial statements the auditor should have or obtain knowledge of the bus sufficient to enable the auditor to identify and understand the events, transactions and practices that is auditor's judgment may have sufficient effect on the financial statements, or on the examinations of report. Such knowledge is used by the auditor in assessing inherent and control risks and in determinin nature, timing and extent of audit procedures. Required: Determine the sources from which the auditor could obtain knowledge of the Insurance industry and P Insurance Company Limited, a newly engaged client. (9 marks

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