None 5. You have completed the audit engagement for ABC Company Ltd and the engagement partner has asked the audit manager to bring the draftcommunication with those charged with governance for discussion. You were among the audit field staff who performed the audit and prepared theworking papers and documented issues for management's considerations.Required:Discuss the main matters that should be included in the communication with those charged with governance.

In the communication with those charged with governance (TCWG) of ABC Company Ltd, it is essential…

Answered: 5. You have completed the audit…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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a)What are key audit matters? How do these affect the format of the audit report? B)Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart iswriting a report for his audit partner based on these results and will be attending a meetingtomorrow with the partner and representatives of the company to discuss them. The issue will bewhether the financial report should be amended, or additional notes included for thesesubsequent events.Many of the items are not material and Stewart will recommend that no action be taken withrespect to these. However, there are several items that Stewart believes are material and shouldbe discussed at the meeting. These are as follows.(a) The board is planning to issue shares in a private placement on 15 August. (b) The share issue is to fund the purchase of a 60 per cent stake in another company. Thenegotiations are in the final stages and although the contract is not yet signed it will be signedby 15 August. (c) A writ was…
The audit director in charge is available for consulting and he approves the audit engagement before its completion. This is part of what quality assurance activity? Select one: O a. Peer review O b. Leadership responsibility for quality within the audit fırm O c. Engagement performance O d. Monitoring O e. Human resources
Choose the preliminary engagement activity of an auditor. O a. Establishing an understanding of the term overall audit strategy O b. Assist the management in identifying and evaluating events O c Establishing an understanding of the terms of the engagement O d. Establishing an understanding of the term of audit planning
Problem 12: Describe the stages of an audit from beginning to end. Detail all steps in a comprehensive summary outlining individual steps and examples of how those steps would be displayed/observed/etc. in a company. Be sure to elaborate on each section by detailing, in simple terms, the objective of the specific stage. For example, Step 1: Plan the Audit > Establish an understanding with the client as to the nature of the engagement. The auditor should prepare an audit engagement letter that outlines……..
(a) What are the key audit matters? How do these affect the format of the audit report? b) Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart iswriting a report for his audit partner based on these results and will be attending a meetingtomorrow with the partner and representatives of the company to discuss them. The issue will bewhether the financial report should be amended, or additional notes included for thesesubsequent events.Many of the items are not material and Stewart will recommend that no action be taken withrespect to these. However, there are several items that Stewart believes are material and shouldbe discussed at the meeting. These are as follows.(a) The board is planning to issue shares in a private placement on 15 August. (b) The share issue is to fund the purchase of a 60 percent stake in another company. Thenegotiations are in the final stages and although the contract is not yet signed it will be signedby 15 August. (c) A…
Using your selected objective, create an audit plan of the organization's financial statements that address the following, with support each with appropriate auditing standards. 1. Business Risks 2. Management Assertions 3. Audit Risk 4. Internal control and effect on audit procedures
The use of an audit engagement letter is the best method of assuring the auditor will have which of the following?Select one: a. Cooperation from other auditors b. Auditor will obtain sufficient appropriate audit evidence. c. Access to all books, accounts and vouchers required for audit purpose d. Management representation letter
Prior to accepting a new audit engagement, a public accounting firm shoulda. Attempt to contact the predecessor auditors.b. Evaluate the integrity of management.c. Assess the firm’s resources to ensure that they are sufficient to permit the firm to accept the engagement.d. All of the above.
Q. Who is responsible for preparing the overall audit strategy and the audit plan? a-Those charged with governance b-Management’s c-Accountant d-Auditor’s
11. The major purposes of obtaining a client representation letter include: Select one:a. To document in the audit working papers the client's responses to many questions asked by the auditors during the engagementb. All of the mentioned is correct c. To remind the client officers of their primary responsibility for the financial statementsd. To provide evidence in areas where accounting presentation may be dependent upon management's future intentions.
An audit includes a number of letters between the auditors and the company such as the report to those charged with governance and the letter of representation. Explain the purpose of these letters and illustrate your answer with examples of matters to be included in each.
You have been asked to prepare a presentation to new recruits in your audit firm on the use of working papers. You have also been asked to include in your presentation a distinction between files held in permanent and current files, the design and use of audit programmes and the purpose of an audit trail with respect to the conduct of the audit. Required a) State four matters you would expect to find recorded in working papers in the permanent audit file and explain their purpose. b) Explain the design and use of audit programmes. c) Explain the importance of recording details of the actual evidence examined in the course of the audit on which the conclusions are drawn. d) Post your response to the discussion forum and engage two of your peers in a critically constructive dialogue about their responses.

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