P. Nonius is the owner/manager of a company that owns several suburban shopping malls. The retail...

 

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P. Nonius is the owner/manager of a company that owns several suburban shopping malls. The retail store lease contracts require the store tenants to pay a flat amount monthly, plus 0.05% of their gross retail sales revenues quarterly. Nonius is concerned that some of the lessees are understating their quarterly gross retail sales. Nonius has contacted you, a PA, to inquire about getting some assurance on the completeness of the retail sales reported by the tenants. You have arranged to meet with Nonius next week to discuss this engagement. Required: a. Prepare notes for your meeting with Nonius that describe the assurance reporting options available here (e.g., audit of the sales revenues, applying specified procedures, or other options), and outline the features of each option to help Nonius decide on the type of assurance that will meet the objective in the most cost- effective way. b. You are aware that Nonius is very cost conscious and will be reluctant to incur the additional cost of getting assurance on the tenants' sales revenues. What additional points could you raise in the meeting with Nonius to show the value that can be provided to Nonius's business by the assurance report itself, and by other aspects of the assurance engagement? P. Nonius is the owner/manager of a company that owns several suburban shopping malls. The retail store lease contracts require the store tenants to pay a flat amount monthly, plus 0.05% of their gross retail sales revenues quarterly. Nonius is concerned that some of the lessees are understating their quarterly gross retail sales. Nonius has contacted you, a PA, to inquire about getting some assurance on the completeness of the retail sales reported by the tenants. You have arranged to meet with Nonius next week to discuss this engagement. Required: a. Prepare notes for your meeting with Nonius that describe the assurance reporting options available here (e.g., audit of the sales revenues, applying specified procedures, or other options), and outline the features of each option to help Nonius decide on the type of assurance that will meet the objective in the most cost- effective way. b. You are aware that Nonius is very cost conscious and will be reluctant to incur the additional cost of getting assurance on the tenants' sales revenues. What additional points could you raise in the meeting with Nonius to show the value that can be provided to Nonius's business by the assurance report itself, and by other aspects of the assurance engagement?

Answer rating: 100% (QA)

a Assurance Reporting Options for Nonius Shopping Malls Meeting Notes Assurance on Retail Sales Reporting Introduction This document outlines the assurance reporting options available to ensure the co... View the full answer