Reference no: EM132727284

Rashid & Co was the auditors of Idaman Bhd's financial statements for the year ended 31 December 2017. On 1 November 2017, the company notified Rashid & Co that it was changing auditors and that Rashid & Co' s services were no longer required. On 5 November 2017, the Audit Committee of the Boards of the Boards of Directors at Idaman Bhd approached Hasan, a senior partner of Hassan, Hamid & Co.'s chartered accountings firm, to make a proposal for an engagements to audit its financial statements for the year ended 31 December 2017. After deciding to accept the engagements, Hasan, Hamid & Co drafted a letter of engagements that was mailed to the audit committee of Idaman Bhd.

Required:

Problem a) Identify the procedure concerning Rashid &Co that should be performed by Hassan before accepting the engagements.

Problem b) Identify the additional procedures that Hassan should consider performing during the planning phase of this audit( after accepting the engagement ) that would not be performed during the audit of a continuing client.

Problem c) List the matters that Hassan, Hamid & Co would generally have included in the letter of engagement.