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 ...

Background informationthis assignment is based on the

Background information This assignment is based on the Professional Application Question 2.37 in your e-text. Fellowes and Associates Chartered Accountants is a successful mid-tier accounting firm with a large range of c ...

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 ...

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 ...

Assignment full disclosure in financial reporting - verizon

Assignment: Full Disclosure in Financial Reporting - Verizon Communications According to the textbook, the goal of financial reporting is to report financial information that is transparent and complete and truthfully re ...

Smith a certified public accounting firm was engaged to

Smith, a certified public accounting firm, was engaged to audit the financial statements of the Sky-is-the-Limit company. The company has its own IT installation. While obtaining an understanding of internal control, Smi ...

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 ...

Objectivesanswer the following questions with reference to

Objectives Answer the following questions with reference to the relevant common law and equity principles operating in Australia concerning contracts plus related and other transactions. Do not consider the effects of le ...

Auditor rotationread the article house counts on honor

Auditor Rotation Read the article, "House Counts on Honor Amongst Thieves: Votes Against Mandatory Auditor Rotation." Based on the information presented in the article, discuss the following: Article link: http://www.for ...

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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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