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Conversations between the board of directors of Acme Lid. and the engagement partner of the financial audit, Angelo Del Santo, have revealed that Acme uses three legal firms. Ball and Partners performs all legal work related to property transfers, mortgages, and planning applications. Brond Associates handles all employment matters, such as claims for unfair dismissal and complex employment contracts. Zimmerman and Co. is retained for all other matters, such as agreements relating to products and suppliers and any international matters.
Required
Problem a What type of communication should Angelo and his audit team have with each legal firm? Explain.
Problem b What procedures could Angelo perform to find out whether any other legal firms have performed work for Acme during the financial year?
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