You are an auditor in Andy & Gary Associates, a mid-tier audit firm. You are deciding whether to continue with the audit engagement of Neville Ltd. Since the previous audit, the company has listed on the Australian Securities Exchange which requires it to comply with additional reporting regulations. Due to rapid growth, Neville Ltd is financially stretched and its accounting systems are struggling to cope with the growth in the business. You recently read an article in the Australian Financial Review, which stated that Neville Ltd is currently under investigation by the Australian Taxation Office (ATO) for alleged failure to pay the appropriate amount of Pay As You Go (PAYG) tax on their payroll. Required: Explain four (4) matters you should consider before continuing with the audit engagement at Neville Ltd.
You are an auditor in Andy & Gary Associates, a mid-tier audit firm. You are deciding whether to continue with the audit engagement of Neville Ltd. Since the previous audit, the company has listed on the Australian Securities Exchange which requires it to comply with additional reporting regulations. Due to rapid growth, Neville Ltd is financially stretched and its accounting systems are struggling to cope with the growth in the business. You recently read an article in the Australian Financial Review, which stated that Neville Ltd is currently under investigation by the Australian Taxation Office (ATO) for alleged failure to pay the appropriate amount of Pay As You Go (PAYG) tax on their payroll. Required: Explain four (4) matters you should consider before continuing with the audit engagement at Neville Ltd.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- You are an auditor in Andy & Gary Associates, a mid-tier audit firm. You are deciding whether to continue with the audit engagement of Neville Ltd. Since the previous audit, the company has listed on the Australian Securities Exchange which requires it to comply with additional reporting regulations. Due to rapid growth, Neville Ltd is financially stretched and its accounting systems are struggling to cope with the growth in the business. You recently read an article in the Australian Financial Review, which stated that Neville Ltd is currently under investigation by the Australian
Taxation Office (ATO) for alleged failure to pay the appropriate amount of Pay As You Go (PAYG) tax on their payroll.
Required:
Explain four (4) matters you should consider before continuing with the audit engagement at Neville Ltd.
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