Puan Sally joined as an audit manager at Faisal & Partners early this year. She was...
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Puan Sally joined as an audit manager at Faisal & Partners early this year. She was an experienced audit senior from one of the big four audit firm. She was recently assigned to audit Perfect Clean Bhd for the financial year ending March 31, 2022. Faisal & Partners has audited the company for several years. Puan Sally assessed the audit documents and had an initial discussion with the head of finance, Encik Sufian. Based on the discussion, the following issues were revealed: i. ii. iii. Faisal & Partners is the tax agent of Perfect Clean Bhd and a personal tax agent for Encik Sufian. Perfect Clean Bhd was billed for all the services performed by Faisal & Partners, including audit and consultancy services. At their first meeting, Encik Sufian informed Puan Sally that Perfect Clean Bhd intends to establish a new website to provide online sales to its clients. He has requested assistance from Faisal & Partners in designing and implementing the website and online sales system. Bard Associates has performed a due diligence audit for Perfect Clean Berhad for a possible merger exercise with one of the most reputable hygiene companies in Japan in the middle of this year. Bard Associates allows Faisal & Partners to access the working papers. There was a mountain of work done in the sales and expenses area by Bard Associates. Faisal & Partners were so relieved that they decided to fully rely on the work done by Bard Associates for these sections. iv. The audit team was invited to attend the Perfect Clean Bhd annual dinner while doing the field audit. The whole team attended the annual dinner and was surprised to receive RM1,000 hypermarket coupon as a gift for each of the team member. Required: Comment on the ethical and professional issues relating to MIA By-Laws (on) Professional Ethics, Conduct and Practice) arising from the scenarios above and recommend actions required of Faisal & Partners to maintain their ethics and professionalism. Provide your answers using the format below: No Ethical and Professional Issues Recommendation (15 marks) Puan Sally joined as an audit manager at Faisal & Partners early this year. She was an experienced audit senior from one of the big four audit firm. She was recently assigned to audit Perfect Clean Bhd for the financial year ending March 31, 2022. Faisal & Partners has audited the company for several years. Puan Sally assessed the audit documents and had an initial discussion with the head of finance, Encik Sufian. Based on the discussion, the following issues were revealed: i. ii. iii. Faisal & Partners is the tax agent of Perfect Clean Bhd and a personal tax agent for Encik Sufian. Perfect Clean Bhd was billed for all the services performed by Faisal & Partners, including audit and consultancy services. At their first meeting, Encik Sufian informed Puan Sally that Perfect Clean Bhd intends to establish a new website to provide online sales to its clients. He has requested assistance from Faisal & Partners in designing and implementing the website and online sales system. Bard Associates has performed a due diligence audit for Perfect Clean Berhad for a possible merger exercise with one of the most reputable hygiene companies in Japan in the middle of this year. Bard Associates allows Faisal & Partners to access the working papers. There was a mountain of work done in the sales and expenses area by Bard Associates. Faisal & Partners were so relieved that they decided to fully rely on the work done by Bard Associates for these sections. iv. The audit team was invited to attend the Perfect Clean Bhd annual dinner while doing the field audit. The whole team attended the annual dinner and was surprised to receive RM1,000 hypermarket coupon as a gift for each of the team member. Required: Comment on the ethical and professional issues relating to MIA By-Laws (on) Professional Ethics, Conduct and Practice) arising from the scenarios above and recommend actions required of Faisal & Partners to maintain their ethics and professionalism. Provide your answers using the format below: No Ethical and Professional Issues Recommendation (15 marks)
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No Ethical and Professional Issues Recommendation 1 Audit firm acting as an agent of t... View the full answer
Related Book For
Auditing The Art And Science Of Assurance Engagements
ISBN: 9780136692089
15th Canadian Edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan, Joanne C. Jones
Posted Date:
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