Identify any reasons for not accepting the audit engagement

Assignment Help Accounting Basics
Reference no: EM132641537

Question - Smith & Jones audit firm is determining whether to accept an audit engagement with Simple Things Ltd. As this would be a new engagement the audit firm sought the client's permission to contact the current auditor. The client did not give their permission, explaining that they did not want the current auditors to know they were thinking of changing.

Recently Simple Things Ltd had been in the media for management not disclosing an environmental disaster that occurred at one of their plant sites. The incident is still under investigation but if the company is found to be at fault then they may be subject to numerous lawsuits from the many private landholders near the plant.

From the information provided above, identify any reasons for not accepting the audit engagement with Simple Things Ltd.

Reference no: EM132641537

Questions Cloud

Verify truly objective and measureable success : During a change initiative, what can organizations use to identify or verify truly objective and measureable success?
Calculate and interpret the VaR of the portfolio : Suppose that the gain from a portfolio during six months is normally distributed with a mean of $3.5 million. Calculate and interpret the VaR of the portfolio
What is the purpose of a balance sheet : What is the purpose of a Balance Sheet? What is the purpose of an income statement? What are the typical categories and sub-categories for an income statement
How many kg of peas is he going to consume : Suppose that John consumes 30 kg of beans. Assume that he wants to spend all his income, how many kg of peas is he going to consume
Identify any reasons for not accepting the audit engagement : From the information provided above, identify any reasons for not accepting the audit engagement with Simple Things Ltd
Business law and ethics : What are the purposes of law? Do you think Judges should be elected or appointed and why? Should they have term limits?
Calculate the debt ratio : Calculate the debt ratio. Current assets $300,000; Current liabilities $200,000; Non-current assets $800,000; Non-current liabilities $350,000
Fictitious initial coin offering : You'll create a lightweight white paper for a fictitious Initial Coin Offering (ICO). You will use your imagination to create a brand new, hopefully unique, ICO
Calculate the return on ordinary shareholders funds : Earnings before interest and taxes are $100,000. Interest is $21,000 and taxes are $34,000. Calculate the return on ordinary shareholders' funds

Reviews

Write a Review

Accounting Basics Questions & Answers

  Estimate a cost formula for custodial supplies expense

Using the high-low method, estimate a cost formula for custodial supplies expense where X is the number of guest-days

  Calculate the amount of joint manufacturing costs

ACCT520 - Assignment - Calculate the amount of joint manufacturing costs allocated to each product using the number of produced as the allocation base

  Prepare january journal entry to record the bond issuance

Legacy issues $710,000 of 8.0%, four year bonds dated January 1, 2015, Prepare the January 1, 2015, journal entry to record the bond's issuance

  Joes golf cart store signed a 15000 120-day 6 note payable

joes golf cart store signed a 15000 120-day 6 note payable to cover a past due account payable. what amount of

  Make a bank reconciliation for colwell estimating the

as the new junior accountant at colwell company you have been asked to prove the cash account balance at 123112. you

  Determine the appropriate income statement presentation

Determine the appropriate income statement presentation (Sales, cost of sales, gross profit, operating income or expense, non-operating income or expense)

  How much will the preferred stockholders receive

Dividends have been paid in every year except the past 2 years and the current year. How much will the preferred stockholders receive

  What gain or loss should hill record on the sale

Hill sold the machine on January 1, 2018, for $8,400. The book value as of December 31, 2017 is $7,160. What gain or loss should Hill record on the sale

  Which of the techniques is the most useful tool to use

Based on the following information, calculate in Excel and show your work for net present value (NPV), internal rate of return (IRR), and payback.

  Compare similarities and differences between ifrs and gaap

From the e-Activity, compare the major similarities and differences between IFRS and GAAP in regard to authoritative guidance of the statement of cash flows.

  Write a paper 2000-2500 words regarding the regulation of

write a paper 2000-2500 words regarding the regulation of financial reporting as established through the securities act

  Accrues interest on the revenue bonds as of december

Accrues interest on the revenue bonds as of December 31, 2013 Records one year depreciation on the depreciable assets. The depreciable assets are estimated to have a useful life of 20 years.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd