For each of the independent case identify the auditor opinion, and appropriate response. In your answer...

 

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For each of the independent case identify the auditor opinion, and appropriate response. In your answer please do the following: a-Explain and Justify your answer. b-Bring all the alternative scenarios when answer. c- Mention the appropriate auditor responses for each scenario. 1- Management refuses to permit the auditor to obtain confirmations about balances of certain vendors due to judicial dispute between the client and vendors. 2- The auditor discovers serious deficiency of the client's internal control. 3- The auditor discovers client's tax evasion. 4- The auditor discovers a fraudulent act committed by a senior employee of the client. 5- The client (auditee) incurred recurred losses for the last four years and have serious difficulties in paying debts which rise concerns about the going concern issue. 6- Management refuses to write down the ending inventory as asked by the auditor. For each of the independent case identify the following: a type of ethics threat (if it exists). b- Type of required ethic that would be affected. c- The appropriate response that should be taken by the auditor. d- For each case take possible scenarios. e- Explain and justify your answer. 1- Susan was asked to join audit team that will audit ZXC company for the coming year2020. Susan was chief accountant for ZXC Co. till December 31, 2018. 2- Adela former senior auditor at the firm two years ago is now the financial manager of BNM Company. BNM Co make an engagement offer to the firm to audit its current Financial statements. 3- PWS an audit firm get an offer from GTY a public company, to audit its Financial Statements for a total contract amount of $500000. The average yearly income of PWS is $600000. 4- Ghada a member of PWS which audit RTY Co. get engaged to CFO of RTY. 5- RTY Company asks its auditor PWS the following: a- Appropriate estimation of allowances for contingent liabilities. b- Design and apply Accounting information system. c- Manage the internal audit department. For each of the independent case identify the auditor opinion, and appropriate response. In your answer please do the following: a-Explain and Justify your answer. b-Bring all the alternative scenarios when answer. c- Mention the appropriate auditor responses for each scenario. 1- Management refuses to permit the auditor to obtain confirmations about balances of certain vendors due to judicial dispute between the client and vendors. 2- The auditor discovers serious deficiency of the client's internal control. 3- The auditor discovers client's tax evasion. 4- The auditor discovers a fraudulent act committed by a senior employee of the client. 5- The client (auditee) incurred recurred losses for the last four years and have serious difficulties in paying debts which rise concerns about the going concern issue. 6- Management refuses to write down the ending inventory as asked by the auditor. For each of the independent case identify the following: a type of ethics threat (if it exists). b- Type of required ethic that would be affected. c- The appropriate response that should be taken by the auditor. d- For each case take possible scenarios. e- Explain and justify your answer. 1- Susan was asked to join audit team that will audit ZXC company for the coming year2020. Susan was chief accountant for ZXC Co. till December 31, 2018. 2- Adela former senior auditor at the firm two years ago is now the financial manager of BNM Company. BNM Co make an engagement offer to the firm to audit its current Financial statements. 3- PWS an audit firm get an offer from GTY a public company, to audit its Financial Statements for a total contract amount of $500000. The average yearly income of PWS is $600000. 4- Ghada a member of PWS which audit RTY Co. get engaged to CFO of RTY. 5- RTY Company asks its auditor PWS the following: a- Appropriate estimation of allowances for contingent liabilities. b- Design and apply Accounting information system. c- Manage the internal audit department.

Answer rating: 100% (QA)

1 Managements Refusal to Allow the Auditor to Send a Confirmation Request If management refuses to allow the auditor to send a confirmation request the auditor shall a Inquire as to managements reason... View the full answer