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Question
Harry CPAs is about to commence the audit of Ujenzi Construction co. Ltd. a public company based in Nuru city.. This company is in the construction and speculative housing industry, which has expanded greatly in the recent years .It is run by Mr Hiang who is known to be a very autocratic but charismatic entrepreneur. He has expanded the company rapidly by both acquisition and internal growth. The company is heavily geared and the share price has fallen from an absurd high to a very low figure in the past two years.
a. In what ways is there a risk of misstatement in the auditors opinion on the financial statements ?
b. What influences would act on Harry CPAs in conducting the audit?
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