Hello firm is the external auditor of Staygreen, a charity established to promote the protection of the
Question:
Hello firm is the external auditor of Staygreen, a charity established to promote the protection of the environment. Staygreen raises income from the sale of food and drinks in cafes located in city centres and from donations made by individuals. The cafes are managed and staffed by unpaid volunteers. Donations are made to Staygreen through collection boxes located in each cafe and by post to Staygreen's headquarters.
Identify THREE key audit risks associated with your firm's audit of Staygreen's income.
(b)Smile firm is the external auditor of Wangsa Berhad (Wangsa), a marketing agency, for the year ended 31 December 2020. During the audit of work in progress, Smile discovers that 20% of the work in progress balance relates to completed marketing projects which were delivered to clients more than three months before the year end and had not yet been invoiced.
Needed is notes in readiness for drafting the Smile firm's report to the management of Wangsa, which outline the possible consequences of this significant internal control deficiency and provide recommendations to remedy the deficiency.
(c) External auditors are required to obtain written representations from management when performing an engagement to examine prospective financial information.
List the representations that should be obtained and explain why they are required.
Auditing A Practical Approach
ISBN: 978-1119566007
3rd Canadian edition
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren