Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Auditing Expert

Hibiscus Ltd is a company that provides call centre services for a variety of organisations. It operates in a medium sized city in which Alamanda Auditors is the largest audit firm. Hibiscus Ltd is owned and run by two entrepreneurs with experience in this sector and has been in existence for five years. It is expanding rapidly in terms of its client base, the number of staff it employs and its profits. It is now 1 December 2010 and Alamanda Auditors has been approached to perform the audit for the year ending 31 December 2010. Alamanda Auditors has not audited this company before. Hibiscus Ltd has had three different firms of auditors since its incorporation.

Hibiscus Ltd’s directors have indicated to Alamanda Auditors informally that the reason they wish to change auditors is because of a disagreement about certain disclosures in the financial statements in the previous year. The directors consider that the disagreement is a trivial matter and have indicated that the company accountant will be able to provide Alamanda Auditors with the details once the audit has commenced. Alamanda Auditors has describeed that before accepting the appointment, there are various matters to be considered within the firm and other procedures to be undertaken, some of which will require the cooperation of the directors. Alamanda Auditors has other clients that operate call centres. The directors have asked Alamanda Auditors to commence the audit immediately because audited accounts are needed by the bank by 31 January 2011. Alamanda Auditors is very busy at this time of year.

Required:

problem1. Describe the matters to consider within Alamanda Auditors and the other procedures that should be undertaken before accepting the appointment as auditor to Hibiscus Ltd.

problem2. Describe why it would be unsuitable to commence the audit before consideration of the matters and the procedures referred to in (a) above have been completed.

problem3. Describe the purpose of an engagement letter and list its contents.

Auditing, Accounting

  • Category:- Auditing
  • Reference No.:- M96310

Have any Question? 


Related Questions in Auditing

Accounting - auditing paper questionsapa format minimum 3

Accounting - Auditing Paper / Questions APA format, minimum 3 pages +title,reference Please Answer Following Questions 1. Describe what are the 3 conditions that are likely to be present when a fraud occurs. 2. Which of ...

Information security audit assignment -objectives - this

Information Security Audit Assignment - OBJECTIVES - This assignment is designed to assess students' ability to: Produce a concise detailed report about the importance of information security audit policy and its compone ...

Assignment question 1impulse pty ltd impulse is an

Assignment Question ( 1) Impulse Pty Ltd (Impulse) is an entertainment system manufacturer that was established in 2005. Your audit firm King & Queen have been the auditor of Impulse since its formation. The audit report ...

Develop critical analysis skills in relation to auditor

Develop critical analysis skills in relation to auditor independence and issues in accepting audit engagements. Background information This assignment is based on the Professional Application Question 2.37 in your e-text ...

Internal audithow could the effectiveness of the internal

Internal Audit How could the effectiveness of the internal audit function be improved to obtain better protection of shareholders and enable external auditors to provide a higher quality of audit opinion? Should any such ...

Assignment audit assurance and compliancebullthis

ASSIGNMENT: Audit, Assurance and Compliance • This assignment is to be submitted in accordance with assessment policy stated in the Subject Outline and Student Handbook. • It is the responsibility of the student who is s ...

Questionnbspinstructions this assignment is to be submitted

Question:  Instructions: This assignment is to be submitted in accordance with assessment policy stated in the Subject Outline and Student Handbook. It is the responsibility of the student who is submitting the work, to ...

Assignment question 1impulse pty ltd impulse is an

Assignment Question ( 1) Impulse Pty Ltd (Impulse) is an entertainment system manufacturer that was established in 2005. Your audit firm King & Queen have been the auditor of Impulse since its formation. The audit report ...

Internal essaywhile there is no minimum length i anticipate

Internal Essay While there is no minimum length, I anticipate one to two pages (single spaced, Times New Roman 12 font) for each question. I would look for clear and well-argued submissions showing your depth of knowledg ...

Assignmentchoose a publicly traded company and research its

Assignment Choose a publicly traded company, and research its annual report. (If you cannot find it online, you can go to the U.S. securities and Exchange Commission Web site and locate a copy). These results have been a ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen