PCW You are a chartered accountant and registered auditor working as the technical partner at PCW...

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PCW You are a chartered accountant and registered auditor working as the technical partner at PCW auditing firm. You are regularly consulted on situations and queries that the other partners have Below are some of the queries that you have received. Query 1 Ebi Schotz is the partner in charge of an audit. The managing director of the company phoned Elbi at 04:00 to threaten the firm with a lawsuit. Elbi would like to have information on the legal ability of the auditor, according to the Auditing Profession Act (9 Marks) Query 2 Lerato Kekana has decided to resign as partner. A client of the firm has offered her an appointment as financial manager at their head office. Lerato wants to know if she can accept the appointment and any steps the firm can take to reduce any threats to the fundamental principles because of her appointment. (7 Marks) Query 3 Robert Maseko was made partner at the beginning of August 2018. He has instructed his personal assistant to have his new business cards printed. He reminds her that he is also a member of SAICA and IRBA. The personal assistant wants to know why Robert told her about his memberships to these institutions. (2 Marks) Query 4 Mark Nzuza is the partner in charge of the audit of a local medical practice. Your audit firm also completes tax returns of the individual doctors. Mark informs you that while he was completing the tax return of Doctor Scalpel, he became aware of the fact that some fees for services rendered are not being deposited in the practice's bank accounts. When Mark asked about this fact, he was informed that it is common practice for the doctors to do this with cash payments and that nobody needed to know about this. Mark wants to know what his responsibilities regarding the tax evasion are (7 Marks) Source: De Villiers, C. 2021 Required: Provide a response to each query. Note the mark allocation for each query. (25 Marks) PCW You are a chartered accountant and registered auditor working as the technical partner at PCW auditing firm. You are regularly consulted on situations and queries that the other partners have Below are some of the queries that you have received. Query 1 Ebi Schotz is the partner in charge of an audit. The managing director of the company phoned Elbi at 04:00 to threaten the firm with a lawsuit. Elbi would like to have information on the legal ability of the auditor, according to the Auditing Profession Act (9 Marks) Query 2 Lerato Kekana has decided to resign as partner. A client of the firm has offered her an appointment as financial manager at their head office. Lerato wants to know if she can accept the appointment and any steps the firm can take to reduce any threats to the fundamental principles because of her appointment. (7 Marks) Query 3 Robert Maseko was made partner at the beginning of August 2018. He has instructed his personal assistant to have his new business cards printed. He reminds her that he is also a member of SAICA and IRBA. The personal assistant wants to know why Robert told her about his memberships to these institutions. (2 Marks) Query 4 Mark Nzuza is the partner in charge of the audit of a local medical practice. Your audit firm also completes tax returns of the individual doctors. Mark informs you that while he was completing the tax return of Doctor Scalpel, he became aware of the fact that some fees for services rendered are not being deposited in the practice's bank accounts. When Mark asked about this fact, he was informed that it is common practice for the doctors to do this with cash payments and that nobody needed to know about this. Mark wants to know what his responsibilities regarding the tax evasion are (7 Marks) Source: De Villiers, C. 2021 Required: Provide a response to each query. Note the mark allocation for each query. (25 Marks)

Answer rating: 100% (QA)

Query 1 Ees Scholtz is the partner in charge of an audit The managing director of the company phoned Ees at 0400 to threaten the firm with a lawsuit Ees would like to have information on the legal lia... View the full answer