3 Curlew Ltd You work in a mid-tier firm with 54 partners which has been invited by the directors of Curlew Ltd (Curlew) to accept appointment as external auditor of the company. The assurance firm which currently performs the external audit will not be re-appointed when its term of office expires. Curlew is an owner managed business which is run by Mr and Mrs Curlew who are currently the only directors. You currently audit a number of companies in the same industry sector. The directors have indicated that they would like your firm to provide the following additional services: (1) Advice in respect of the purchase of an off-the-shelf IT package as the directors are overwhelmed by the choice available. (2) Assistance with the recruitment of a finance director; and provision of advice on the remuneration package of the prospective finance director. Requirements Set out the matters, other than independence and objectivity, to be considered and the procedures to be performed in order to determine whether it is appropriate for your firm to accept appointment as statutory auditor of Curlew Ltd. (b) Set out the responsibilities of the outgoing firm of auditors relating to the change of appointment in order to comply with the ICAEW Code of Ethics. (c) Identify the principal threats to independence which may arise from the provision of ..... non-audit services requested by the directors of Curlew and explain how your firm might respond to these threats.
3 Curlew Ltd You work in a mid-tier firm with 54 partners which has been invited by the directors of Curlew Ltd (Curlew) to accept appointment as external auditor of the company. The assurance firm which currently performs the external audit will not be re-appointed when its term of office expires. Curlew is an owner managed business which is run by Mr and Mrs Curlew who are currently the only directors. You currently audit a number of companies in the same industry sector. The directors have indicated that they would like your firm to provide the following additional services: (1) Advice in respect of the purchase of an off-the-shelf IT package as the directors are overwhelmed by the choice available. (2) Assistance with the recruitment of a finance director; and provision of advice on the remuneration package of the prospective finance director. Requirements Set out the matters, other than independence and objectivity, to be considered and the procedures to be performed in order to determine whether it is appropriate for your firm to accept appointment as statutory auditor of Curlew Ltd. (b) Set out the responsibilities of the outgoing firm of auditors relating to the change of appointment in order to comply with the ICAEW Code of Ethics. (c) Identify the principal threats to independence which may arise from the provision of ..... non-audit services requested by the directors of Curlew and explain how your firm might respond to these threats.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:3 Curlew Ltd
You work in a mid-tier firm with 54 partners which has been invited by the directors of Curlew Ltd
(Curlew) to accept appointment as external auditor of the company. The assurance firm which currently
performs the external audit will not be re-appointed when its term of office expires.
Curlew is an owner managed business which is run by Mr and Mrs Curlew who are currently the only
directors. You currently audit a number of companies in the same industry sector.
The directors have indicated that they would like your firm to provide the following additional services:
(1) Advice in respect of the purchase of an off-the-shelf IT package as the directors are overwhelmed
by the choice available.
(2) Assistance with the recruitment of a finance director; and provision of advice on the remuneration
package of the prospective finance director.
Requirements
(a) Set out the matters, other than independence and objectivity, to be considered and the
procedures to be performed in order to determine whether it is appropriate for your firm to
accept appointment as statutory auditor of Curlew Ltd.
(b)
Set out the responsibilities of the outgoing firm of auditors relating to the change of
appointment in order to comply with the ICAEW Code of Ethics.
(c)
Identify the principal threats to independence which may arise from the provision of ....
non-audit services requested by the directors of Curlew and explain how your firm might respond
to these threats.
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