Modern commercial world auditors provide numerous

Reference no: EM131048908

In the modern commercial world, auditors provide numerous other services to complement their audit work. These services include the following:
(a) Accountancy and book-keeping assistance, e.g. in the maintenance of ledgers and in the preparation of monthly and annual accounts.
(b) Secretarial help, e.g. ensuring that the company has complied with the Companies Act in the maintenance of shareholder registers and in the completion of annual returns to Companies House.
(c) Consultancy services, e.g. advice on the design of information systems and organisational structures, advice on the choice of computer equipment and software packages, and advice on the recruitment of new executives.
(d) Investigation work, e.g. appraisals of companies that might be taken over.
(e) Receivership work, e.g. when the firm assumes the role of receiver or liquidator on behalf of an audit client.
(f) Taxation work, e.g. tax planning advice and preparation of tax returns to the Inland Revenue for both the company and the company's senior management.
Discuss:
(i) Whether any of these activities is unacceptable as a separate activity because it might weaken an auditor's independence.
(ii) The advantages and disadvantages to the shareholders of the audit firm providing this range of service.

Reference no: EM131048908

Questions Cloud

Because of a reduction in demands for good : Because of a reduction in demands for goods and services production and real GDP go down. As a result many people lose their jobs. These people who lose their jobs are classified as:

The identity of the third party : the identity of the third party?

Policies and arrangements concerning directors : The Companies (Summary Financial Statement) Regulations 2008 provides that The summary financial statement ...must include a statement in a prominent position to the effect that the summary financial statement does not contain sufficient informati..

Start looking for a different one : Wolfgang loves his rich wife but hates his boring job. He quits his job and start looking for a different one. Some jobs are available in his area of expertise, but it will take time for him to find them. During the time he is searching, he is cha..

Modern commercial world auditors provide numerous : In the modern commercial world, auditors provide numerous other services to complement their audit work. These services include the following: (a) Accountancy and book-keeping assistance, e.g. in the maintenance of ledgers and in the preparation o..

Overstate standards of living : Which of the following is a reason that census data may not provide an accurate measure of standards of living? - Census data overstate standards of living because noncash transfers are counted as income.

How to parse and interpret a pascal program definition : How to parse and interpret a Pascal program definition - how to parse and interpret compound statements?

Maximize profit in the face of uncertainty : 2. There is no market supply curve in: 3. To maximize profit in the face of uncertainty, firms should produce the output where:

Potential gdp and labour market diagrams : Discuss how each of these options will affect wages and labour productivity, potential GDP and real GDP. Will they lead to growth in real GDP and rises in real GDP per capita? use the potential GDP and labour market diagrams in your answer.

User Account

All Pages