You are the audit manager of Overseas Explorer Ltd (OEL), which acquired the small proprietary company Local
Question:
The management accounts for the year ended 30 June 2017
All transactions occurring from the date negotiations commenced until the settlement date, to ensure that all transactions were within the normal course of operations
The financial report prepared at the acquisition date of 30 June 2018
In order to clarify your responsibilities, you requested that OEL indicate the level of assurance that they require for each item. Wendy replied that the financial report as at acquisition date is very important, as are the transactions since negotiations commenced, but that she is willing to have less work done on the previous year’s management accounts.
Required:
Indicate the type of engagement that will most likely be undertaken for each of the three tasks and the level of assurance to be provided. Explain your selections.
Auditing and Assurance Services A Systematic Approach
ISBN: 978-0077732509
10th edition
Authors: William Messier Jr, Steven Glover, Douglas Prawitt