You are an audit senior performing the audit of Stella's Stars Ltd., a talent agency. In...

 

Transcribed Image Text:

You are an audit senior performing the audit of Stella's Stars Ltd., a talent agency. In performing the audit, Stella informs you of the following: 1. She does not want you to send the bank a confirmation because she objects to the cost and feels that the year-end bank statement issued by the bank should be sufficient. 2. She would like you to prepare the bank reconciliation at the end of the year. 3. She would like the audit done within one month of the end of the financial year. What concerns do you have regarding Stella's request? A bank statement is not the best form of audit evidence General audit practice is to send bank confirmations on all audits ✔ Preparing the bank reconciliation may create a self-interest threat The auditor is not able to prepare the bank reconciliation and still audit the company ✔ Even with time constraints, the planning of the audit must be performed adequately O Whether adequate audit staff be available within the required time period You are an audit senior performing the audit of Stella's Stars Ltd., a talent agency. In performing the audit, Stella informs you of the following: 1. She does not want you to send the bank a confirmation because she objects to the cost and feels that the year-end bank statement issued by the bank should be sufficient. 2. She would like you to prepare the bank reconciliation at the end of the year. 3. She would like the audit done within one month of the end of the financial year. What concerns do you have regarding Stella's request? A bank statement is not the best form of audit evidence General audit practice is to send bank confirmations on all audits ✔ Preparing the bank reconciliation may create a self-interest threat The auditor is not able to prepare the bank reconciliation and still audit the company ✔ Even with time constraints, the planning of the audit must be performed adequately O Whether adequate audit staff be available within the required time period

Answer rating: 100% (QA)

Concerns of the Senior Auditor during the conduct of Audit of Stellas Stars Ltd a Talent agency 1 Du... View the full answer