Additional audit procedures Need to obtain either opinion based on IFRS (assuming local audit firm has the training and competence to supply this) or to conduct a very detailed review of completeness and appropriateness of policies supplied. As Bhagat is in a different business to UK entities, there may well be omissions, such as the treatment of software development costs (not clear where these are classified at present).•Comment in clearance from Bhagat implies that the company has a defined benefit pension plan and that this has not been accounted for under IAS-19. It also implies that the plan may have a significant deficit which should be reflected on the group balance sheet. This could be a very significant adjustment. Additional audit procedures Need to determine the nature of the scheme and how accounted for at present. If it is a defined benefit scheme then will need an actuary to assess the liability to be recognised under IAS-19. Will also need to perform work on the existence and valuation of pension scheme assets. Knowledge of both IFRS and the local Ruritanian employment and investment markets is likely to be required. •Bhagat appears to have an investment which has not been considered further. Amount is immaterial but need to determine whether this is a trade investment or an investment in a subsidiary or associate whose results should be included in the group accounts. Additional audit procedures Further information on the nature of this investment and the results of any subsidiary / associate are required so that the need for and materiality of any adjustment can be fully assessed.UK subsidiaries •Aducit – comment on obsolescence provision is potentially concerning as this is a policy which has presumably been applied across the group. If a similar error rate applied to the provision in the other group companies, then the total error would be £225,000 which is material. Need to consider the nature of inventories in each entity and to evaluate further any potential error which may arise. Bhagat auditors have not raised this as an issue but that may be because their audit work has not gone beyond ensuring compliance with group policies. Could however be because Bhagat is not facing the same issues. Additional audit procedures Need to discuss with management and other audit teams and determine extent to which additional analysis is required based on actual post year end sales and sales forecasts rather than historic data. Adjustment identified in Aducit is not material but should be considered along with any other unbooked adjustments at subsidiary or group level. An overall group adjustment schedule should be maintained.