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Problem - You have been talking with your friend Bob Johnson about the awesome auditing class that you recently completed. Bob is the owner of a local printing business and has heard that he should consider having his company's financial statements audited by an independent CPA. Bob tells you that he took a bookkeeping class at school and prepares his company's financial statements each year. Bob admits that he does not understand the value of having his financial statements by a CPA. Bob has asked you to explain why an audit is considered important.
Required -
1. Describe the objectives of an independent financial statement audit.
2. List at least five ways in which an independent audit might be beneficial for your friend Bob.
3. Are there any other types of assurance services that you might suggest to Bob besides a full financial statement audit?
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Why is quality management important to the scope of the project?
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