You just started work at an auditing firm, City Auditors CC. The firm is a well-known and well-established firm in the auditing industry. Over the past few years, the company has been auditing its old clients until recently when it got a new client, Coastal waves CC, a company that deals in PPE for vessel crew. This is the first time Coastal waves CC is having the services of an auditor. According to the shareholders, they hired an auditing company because the bank wants audited financial statements and NamRA, Domestic Taxes want audited financial statements too. Being the first time to be audited, shareholders and management of Coastal waves CC don't know the concept of auditing. You are part of the engagement team that will audit Coastal waves CC and your supervisor has picked you to write a letter to the shareholders and management of Coastal waves cc explaining to them what auditing all is about. Briefly explain in not more than 350 words the concept of auditing to Coastal Waves CC paying attention to key areas of an audit engagement.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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You just started work at an auditing firm, City Auditors CC. The firm is a well-known and well-established firm in the auditing industry. Over the past few years, the company has been auditing its old clients until recently when it got a new client, Coastal waves CC, a company that deals in PPE for vessel crew. This is the first time Coastal waves CC is having the services of an auditor. According to the shareholders, they hired an auditing company because the bank wants audited financial statements and NamRA, Domestic Taxes want audited financial statements too. Being the first time to be audited, shareholders and management of Coastal waves CC don't know the concept of auditing. You are part of the engagement team that will audit Coastal waves CC and your supervisor has picked you to write a letter to the shareholders and management of Coastal waves cc explaining to them what auditing all is about. Briefly explain in not more than 350 words the concept of auditing to Coastal Waves CC paying attention to key areas of an audit engagement.
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