As noted in the information given, the Company's CFO was a former manager with your firm and is a very qualified and capable individual. During your planning meeting, the current engagement manager compliments the CFO's abilities and takes a moment to describe for the engagement team the issues that were often present in prior years before the Company hired the new CFO; including the fact that there were often dozens of required adjustments and long delays in getting the audit completed as a result of the many non-accounting related responsibilities of the Company's prior accounting staff. He also indicated that under the leadership of the new CFO that the control environment had been significantly improved. 

Required By reference to SAS 145, including A275, indicate the type of risk of material misstatement that may have existed under the prior accounting leadership of the Company.

 

Answer rating: 100% (QA)

Under the prior accounting leadership of the Company the ... View the full answer