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A practitioner cannot accept an engagement unless he believes the subject matter to be capable of reasonably consistent evaluation against suitable, available criteria. An examination may be performed if, in addition to the general conditions, sufficient evidence exists or can be developed to support the responsible party's evaluation. To express an opinion, the practitioner must gather sufficient evidence to reduce attestation risk to an acceptably low level. Attestation risk is similar to the audit risk concept used in Statements on Auditing Standards.
Question: What levels of assurance should be given in attestation engagement reports?
Describe and evaluate this type of internal audit. What types of organisation would it be most useful for?
Code of Ethics for Professional Accountants
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Audit partner is concerned about his lack of knowledge of the industry the company is operating in, state of the company's industry and associated risk factors
Prepare a memo to the audit partner on the ‘state of the company's industry' and associated risk factors.
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As a consequence an accounts payable clerk and financial accountant were made redundant from the business during the year.
To identify principal audit risk and corresponding audit procedures
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Prepare a memo on the 'state of the company's industry' and associated risk factors.
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