Question 3: Your firm has acted for many years as accountants to a partnership trading as...

Transcribed Image Text:

Question 3: Your firm has acted for many years as accountants to a partnership trading as Contractors). Your services have included the preparation of annual accounts from the records maintained by the partnership. Acting on advice given by you, the partnership is to be formed into a limited company and the shares are to be held by Mr. Tillman and his son. You firm has been asked to continue to act as Frank Tillman& Son (Building accountants and to prepare future annual accounts. In addition, your firm has been invited to accept appointment as auditors to the company when it is formed. You have received a letter from Mr. Frank Tillman in which he has made general enquiries about the appointment of auditors and the work that they carry out. You have decided that the enquiries should be answered in the form of a letter to Mr. Tillman explaining each of the following matters: 1- The steps to be taken to ensure that your film's appointment as auditors is properly made. 2- The additional responsibilities that your firm will have as auditors. 3. The statutory powers given to auditors to enable them to carry out their work. You are required to write the letter of reply to Mr. Tillman. Note: Write as from a film, using a fictitious name and address. (Marks will be awarded specifically for style as well as for content.) b- How should a practicing accountant calculate his fee? .c- List the ethical rules on independence Question 3: Your firm has acted for many years as accountants to a partnership trading as Contractors). Your services have included the preparation of annual accounts from the records maintained by the partnership. Acting on advice given by you, the partnership is to be formed into a limited company and the shares are to be held by Mr. Tillman and his son. You firm has been asked to continue to act as Frank Tillman& Son (Building accountants and to prepare future annual accounts. In addition, your firm has been invited to accept appointment as auditors to the company when it is formed. You have received a letter from Mr. Frank Tillman in which he has made general enquiries about the appointment of auditors and the work that they carry out. You have decided that the enquiries should be answered in the form of a letter to Mr. Tillman explaining each of the following matters: 1- The steps to be taken to ensure that your film's appointment as auditors is properly made. 2- The additional responsibilities that your firm will have as auditors. 3. The statutory powers given to auditors to enable them to carry out their work. You are required to write the letter of reply to Mr. Tillman. Note: Write as from a film, using a fictitious name and address. (Marks will be awarded specifically for style as well as for content.) b- How should a practicing accountant calculate his fee? .c- List the ethical rules on independence

Answer rating: 100% (QA)

a REPLY LETTER SP Jakhodia Co Chartered Accountants 23A Block C Raj Marg Delhi India 15 February 2022 Mr Frank Tillman 123 Aplhabet Drive Mumbai India Dear Sir Subject In Response to letter no 15326 d... View the full answer