You have recently been appointed as auditor to Johnson Plc; a company whose shares are traded on the Stock Exchange. The Directors of Johnson Plc have recommended that you perform the following services . (i) The statutory audit of the annual financial statements. (ii) Taxation services, and (iii) Consistency services in respect of the implementation of a new information technology system Your firm has not acted for Johnson Plc before but does act as auditor for one of the major competitors. Required. (a) Identify and explain the professional and ethical issues that should have been identified by your firm in relation to the provision of the services outlined above, and describe the safeguards that should be in place in order to address these issues.
You have recently been appointed as auditor to Johnson Plc; a company whose
shares are traded on the Stock Exchange. The Directors of Johnson Plc have
recommended that you perform the following services .
(i) The statutory audit of the annual financial statements.
(ii)
(iii) Consistency services in respect of the implementation of a new information
technology system
Your firm has not acted for Johnson Plc before but does act as auditor for one of the
major competitors.
Required.
(a) Identify and explain the professional and ethical issues that should have been
identified by your firm in relation to the provision of the services outlined above,
and describe the safeguards that should be in place in order to address these
issues.
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