Question: Please help me find the issues and relate to relevant audit and accounting concepts for the actions to take in regard to the case below.
Please help me find the issues and relate to relevant audit and accounting concepts for the actions to take in regard to the case below.
Build Brick by Brick pvt. was an owner-managed small business in the construction industry. Its interim audit for the financial year ending 31 December 2020 was carried out by a fellow audit firm when they were rotated out around November 2020. The owner of the Company, Mr. Murad, had said that the previous auditor had left the audit, because they believed the controls of the Company were not very good and recognised revenue incorrectly. In addition to requesting for audit of the financial statements for the financial year ending 31 December 2020, Mr. Murad had requested us to help with preparing a working capital proposal and attending the bank to present the same. Eventually, the audit partner of us had carried out the audit and accompanied Murad to the bank for presenting the working capital proposal, while one of our audit managers prepared the working capital proposal
Question: Identify and discuss quality control, ethical and professional issues in the above discussed audits, and recommend any remedial actions that should have been taken at the time of those audits.
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