User Account

All Pages

What is the key threat to the auditor independence

Assignment Help Accounting Basics
Reference no: EM132818115

Question - Your audit client Maximus Ltd has recently built a block of apartments in a coastal resort area. The block consists of 15 two-bedroom apartments, with indoor pool, gym and sauna facilities. Sales of the apartments to date have been lower than expected. During the planning stage of the current audit of Maximus, the chief executive explains to the audit partner that Maximus is involved in a legal dispute with the local council over an environmental issue. The CEO asks the audit partner to speak as a reference in the court case by stating that Maximus is an ethical company. He also asks the audit partner to promote the apartments to the audit firm's staff and other clients.

a) What is the key threat to the auditor's independence in this scenario?

b) What action should the audit partner take to remove the threat?

c) The audit partner has determined that the internal control system of Maximus has a number of weaknesses. Who has the responsibility for the internal control system?

Reference no: EM132818115

Questions Cloud

Journal entries to show the costs flow under JIT system : After book completed production of the 20.000 units and shipped 16,000 units, Journal entries to show the costs flow under JIT system
Calculate effective duration using a small step : 1) Zero coupon bond matures in two years, its face value is $1000, It is currently traded at $924.50. What is two year spot rate?
Why primary health care is considered essential care : The Alma-Ata Declaration of 1978 is considered a major milestone of global health. (Do a little research on the Alma-Ata Declaration of 1978).
How many hours did spend complaining on social media : If, in the last month, he spent 480 hours complaining about how the election was stolen from him, how many hours did he spend complaining on social media?
What is the key threat to the auditor independence : The block consists of 15 two-bedroom apartments, with indoor pool, gym and sauna facilities. What is the key threat to the auditor independence
What you observed when analyzing the lesson : Discuss what you learned in the video about setting up a non-threatening learning environment that does not isolate students. For example, what connections can.
Which would recommend as a better place to work at : Low growth opportunities versus a firm with uncertain financials but high growth opportunities, which would you recommend as a better place to work at?
Prepare the consolidation worksheet adjusting entries : Prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019
How principles of udl support career and technical education : This discussion is an opportunity for you to evaluate how the purposeful integration of technology in instruction and assessment supports student acquisition.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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