Solid Inc. (Solid) is a multinational company with annual turnover and total net assets exceeding US$1,000...

  

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Solid Inc. ("Solid") is a multinational company with annual turnover and total net assets exceeding US$1,000 million and US$30,000 million respectively and has business worldwide in different industries. You are the audit manager in charge of Solid. Through your discussion with CEO and CFO, together with the other information gathered for your audit scoping and planning, what would be your audit response to the information gathered below in a) and b), as a group auditor, to ensure the quality of the group audit? (Hints: what are your audit concerns after reading a) and b)? What would you do to address your concerns?) a) Solid has a retail business in Asia Pacific which contributed to 20% of the group's revenue and 10% of the net profit. The retail business is audited by another reputable well-known audit firm that you have confidence in the competence of that audit firm and their compliance with the independence and objectivity requirements. b) Solid has a new real estate project in Brazil with investments of over US $400 million. The project is now audited by a local audit firm but you do not have much information about them in terms of competence, independence and objectivity. c) May Chan is a new audit trainee and is assigned to your audit team. This is her first group audit engagement. She would like you to explain the principal audit procedures that are performed on the consolidation process. Please respond to her request. Solid Inc. ("Solid") is a multinational company with annual turnover and total net assets exceeding US$1,000 million and US$30,000 million respectively and has business worldwide in different industries. You are the audit manager in charge of Solid. Through your discussion with CEO and CFO, together with the other information gathered for your audit scoping and planning, what would be your audit response to the information gathered below in a) and b), as a group auditor, to ensure the quality of the group audit? (Hints: what are your audit concerns after reading a) and b)? What would you do to address your concerns?) a) Solid has a retail business in Asia Pacific which contributed to 20% of the group's revenue and 10% of the net profit. The retail business is audited by another reputable well-known audit firm that you have confidence in the competence of that audit firm and their compliance with the independence and objectivity requirements. b) Solid has a new real estate project in Brazil with investments of over US $400 million. The project is now audited by a local audit firm but you do not have much information about them in terms of competence, independence and objectivity. c) May Chan is a new audit trainee and is assigned to your audit team. This is her first group audit engagement. She would like you to explain the principal audit procedures that are performed on the consolidation process. Please respond to her request.

Answer rating: 100% (QA)

ab All Audit clients are required to provide written responses to audit findings The response repres... View the full answer