Explain the reasons for selecting the issues

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Reference no: EM132743915

Question: Pink Pty Ltd (Pink) is a shoe retailer with twelve shoe shops in metropolitan Adelaide and Country South Australia. It is a family owned company that prepares special purpose financial statements. Pink has been audited by GT Audit for the past ten years. However, this year, the directors of Pink decided to put the audit out to tender.

You are a partner with EM Audit and are considering putting in a tender for the audit of Pink. You believe that the audit of Pink would be a good fit because you have considerable experience in the retail sector. Furthermore, one of your fellow partners is a good friend of the chairman of the board of Pink, and, on this basis, you believe that an association with Pink is appropriate. However, at this stage, you have no knowledge of other board members and senior management of Pink.

Required: Consider the facts above and state two matters that require consideration when deciding about tendering for the audit of Pink. Ensure that the matters you select are specific to the potential audit of Pink and explain the reasons for selecting the issues with reference to the facts of the case.

Reference no: EM132743915

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