Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Henry Wong is the audit partner of Wong, Judd & Co. James Swann, the MD of Evatt Ltd, a large public listed publishing company and Henry Wong are long time friends. Currently they are involved in a substantial joint business venture. James disclosed to Henry that Evatt Ltd is preparing tender documents for next year’s audit. He further indicated that the lowest tender bid received will secure the audit engagement. In addition to the usual audit services, Evatt Ltd is also requiring consulting services for designing and implementing a new financial information technology system that will generate information for the company’s financial statements.

Henry wants to tender for the audit of Evatt Ltd., so he met with his staff to discuss the potential threats to independence in relation to Evatt & Co as audit client. During the meeting, Alvin Turei, the audit senior commented that his aunty is the financial controller of the company. 

Required:

Referring to PES1 (Revised) andPES3 (Revised), and citing the standards where appropriate:

a) describe the ethical audit issues identified in the case facts above

b) describe the specific threats to independence that Henry and his firm are exposed to in relation to Evatt & Co, and

c) Suggest safeguards that may reduce the audit team’s exposure to independence identified in (a) and (b)

Ensure that your answers are clear and specific.

a) Ethical audit issue must contain integrity, auditing duties and responsibility

b) Ethical issue must contain objectivity, confidentiality, competence

c) Ethical issue must contain pes1 100.5 (a), (b), (c), (d)

d) Safeguard must contain pes2 100.13, 14,16

Word limit 600

• Pes1 and 2 is in:

http://xrb.govt.nz/Site/Auditing_Assurance_Standards/Current_Standards/Professional_Ethical_Standards.aspx

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92832

Have any Question? 


Related Questions in Accounting Basics

Assume that wal-mart stores inc has decided to surface and

Assume that Wal-Mart Stores, Inc. has decided to surface and maintain for 10 years a vacant lot next to one of its stores to serve as a parking lot for customers. Management is considering the following bids involving tw ...

Management accounting with a strategic perspective

Management Accounting with a Strategic Perspective Assignment- Scenario - You are a management accountant at Mirror Tools Limited (Mirror Tools) and report to Marshall Singh, who is the chief financial officer. Mirror To ...

Question 1you are a licensed cpa who is a member of both

Question #1 You are a licensed CPA who is a member of both the AICPA and the Oregon Society of CPAs. You work in the Tax Compliance Department of a major publicly traded supermarket chain. The company is considering whet ...

Accounting theory and current issuesbio-sustainable feeds

Accounting Theory and current issues Bio-sustainable Feeds (BSF) Ltd., an Australian bio-research firm listed on the Australian Stock Exchange (ASX), has engaged research on sustainable aqua-culture feeds for two decades ...

Excel formulas functions assignment depreciation

EXCEL FORMULAS / FUNCTIONS Assignment Depreciation Schedule Learning Objectives: 1. Creating Range Names 2. Creating variable Comments 3. Using Absolute and Relative References 4. Creating Formulas using following functi ...

Practice questionsthe following transactions have taken

Practice questions: The following transactions have taken place in a business. Enter the name of the balance sheet item(s) affected under the appropriate column and indicate whether there has been an increase or decrease ...

You are an accountant at wcp accountants and investment

You are an accountant at WCP Accountants and Investment Advisers. You have been approached by a client for your professional advice on investing in Woolworths Ltd. Your client supports Australian made products. Your clie ...

Locate and read the article listed below and answer the

Locate and read the article listed below and answer the following questions. Brandon, D. M. November 2010. External Auditor Evaluations of Outsourced Internal Auditors. Auditing: A Journal of Practice & Theory 29 (2): 15 ...

Practice questionsdescribe the main sources you would use

Practice questions: Describe the main sources you would use to obtain financial information about a public limited company.

Objectives of the assignmentthis assignment develops your

Objectives of the Assignment This assignment develops your capabilities to analyse, reason logically and conceptualise financial, social and environmental issues; and is aligned with the Course Learning Outcomes of ident ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate