a. i) You have been confronted by one of the users of your audit report drafted for Obibini

Co. to help him understand the phrase True and Fair View to enable him make an informed decision. Provide your response.

ii) Discuss the various approaches to audit work available to your team and show how each approach will impact on the audit fee, employees of audit client and quality of audit.

b. There is an assertion that directors hire and fire auditors, as a result, they cannot give a true report on the accounts of the company. As an audit Partner, Comment on this claim.

c. Indicate how the Internal Auditor of Obibini Co. will be useful to your team.

Question

a) A stakeholder of Obibini Co. has indicated that the attest communication you have provided in the audit report is just an expression of opinion rather than a statement of fact, thus he cannot wholly rely on the report to make an informed decision. Provide a detail comment on this claim.

b) The maintenance of an auditor’s independence is vital to the credibility of the audit work in the minds of the users of financial statements. Discuss how your team will maintain independence in this audit engagement.

c) Discuss how your audit firm could be of more constructive use to management of Obibini Co

Answer rating: 100% (QA)

aiAccording to the Generally Accept ed Accounting Principles GA AP a company must maintain a true and fair view of its financial position This means that the company must accurately report its financi... View the full answer