Melanie Adams is a public accountant in a medium-sized public accounting firm who takes an active part
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When the audit is nearly finished, Melanie reviews the working papers again to make sure she has not missed anything significant. Since she makes most of the major decisions on the audit, there is rarely anything that requires further investigation. When she completes the review, she prepares a draft of the financial statements, gets them approved by management, and has them assembled in her firm’s office. No other public accountant reviews the working papers because Melanie is responsible for signing the auditor’s reports.
REQUIRED
a. Evaluate the practice of reviewing the working papers of subordinates on a continuing basis rather than when the audit is completed.
b. Is it acceptable for Melanie to prepare the financial statements rather than have the client assume that responsibility?
c. Evaluate the practice of not having a review of the working papers by another public accountant in the firm. Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Auditing The Art and Science of Assurance Engagements
ISBN: 978-0133098235
12th Canadian edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser
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