What is the benefit of contacting the predecessor auditor

Assignment Help Accounting Basics
Reference no: EM132951472

Assume you are an audit partner for SENA international auditing firm.

The audit committee of ABC manufacturing company contacted you in order to provide financial statements audit for ABC company. As an audit partner, you are discussing with the management and with audit team the significance of contacting the prior auditor and asked for permission to do so. The management of ABC company agreed that you contact the prior auditor to make inquiries and gather additional information. After contacting the prior auditor, SENA audit firm has prepared an engagement letter and sent it to the audit committee of SENA corporation.

Instructions:

1. Explain the characteristics and role of the audit committee in financial statements audit. Discuss and provide you opinion.

2. Do you think that audit committee plays a role in detecting and preventing fraud? Discuss.

3. What is the benefit of contacting the predecessor auditor? What is your opinion on this issue?

4. Explain other important information that are generally included in the engagement letter.

Reference no: EM132951472

Questions Cloud

What is the monthly payment : A borrower made a constant payment mortgage loan 8 years ago for $400,000 at 12 percent interest for 30 years.
Explain rectification cost : a) Calculate the amounts which should appear in the income statement and statement of financial position of Amar Limited at 31 March 2020 in respect of the abov
Define the risk adjusted uncovered interest rate parity : Consider a two-country open economy, consisting of United States (home country) and Japan (foreign country) and answer the following questions:
Calculate the annual rate of interest : Assume the total cost of a college education will be $336,000 when your child enters college in 18 years. You presently have $71,000 to invest.
What is the benefit of contacting the predecessor auditor : Explain the characteristics and role of the audit committee in financial statements audit. Discuss and provide you opinion.
Achieve the target debt ratio : How much must the firm borrow to achieve the target debt ratio? Show all calculations.
Which of the parties involved in the case is right : Which of the parties involved in the case is right and Use your conclusions from the facts in the case to support your decision
Generate a yield curve for us treasuries : -Generate a Yield Curve for US Treasuries as of year-end 2014. Be sure to include the 3 month, 6 month, 1-, 2-, 3-, 5-, 7-, 20-, 30- year maturities.
Calvin financial resources and investment objectives : Calvin Jacobs is a widower who recently retired after a long career with a major Midwestern manufacturer. Beginning as a skilled craftsman, he worked his way up

Reviews

Write a Review

Accounting Basics Questions & Answers

  System demos on the waiting room solutions

Review the specialty system demos on the Waiting Room Solutions page. Identify three changes that were made in the specialty system from the general system. Why do you think these changes were made?

  Show the general journal entry to record this transaction

The firm made a down payment of $5,000 cash and signed a long term note payable for the balance. Show the general journal entry to record this transaction

  Identify and discuss the principles of consolidation

Identify and discuss the principles of consolidation used as disclosed in note 1 to the consolidated financial statements

  What is the total tax

What is the total tax that will be paid by the individual this year if the individual's marginal tax rate is 12% and the corporate marginal rate is 21%

  Indicate the accounts amounts and effects

For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects (+ for increase,  for decrease, and NE for no effect) on the accounting equation, using the following format: For each item, state whether the debt-t..

  Discuss what are the advantages/disadvantages

Would this be a sensible way to raise revenues, What are the advantages/disadvantages, Provide research support for your positions

  Hunter corporation sells a product for 180 per unit the

hunter corporation sells a product for 180 per unit. the products current sales are 34900 units and its break-even

  Determine the correct inventory amount to be reported

The December 31, 2013, year end inventory balance of the Raymond Corporation is $210,000. You have been asked to review the following transactions to determine if they have been correctly recorded.

  Developing standards for products

Harnish Corporation is developing standards for its products. One product requires an input that is purchased for $55.00 per kilogram from the supplier. By paying cash, the company gets a discount of 8% off this purchase price.

  Northern manufacturing company found that during the last

northern manufacturing company found that during the last year it took an average of 43 days to pay its suppliers while

  Conceptual connection suppose that a third system system c

audiomart is a retailer of radios stereos and televisions. the store carries two portable sound systems that have

  Compute the amount of the bonus payable to the employees

Compute the amount of the bonus payable to the employees at year-end (use the method described in the chapter and round to the nearest dollar)

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