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Auditing and Assurance Assignment PDF

   

Added on  2021-04-21

5 Pages783 Words90 Views
Running head: AUDITING AND ASSURANCEAuditing and assuranceName of the studentName of the universityStudent IDAuthor note
Auditing and Assurance Assignment PDF_1
To: Brit@Phoenixca.com.auCc: John@Phoenixca.com.auBcc: Mariah@Phoenixca.com.auSubject: Potential independence issuesDear Ms Burton,I would like to inform you regarding the audit issues recognized while auditing Scooty PtyLtd, Pyeong Ltd, Bobsleigh Pty Ltd and Morris Davidson. The issues were regarding theassessment of independence issues with the application of APES110. The potential threatsand recommended safeguards are mentioned below –1.Scotty Pty Ltd1.1Issue – the company requested the audit firm to become the expert witness in thecourt case for providing litigation service for claiming insurance in the loss inbusiness profits 1.2Potential threats – if the audit firm provides the service associated with litigationsupport to the audit client and service includes estimation of damages or any otheramounts that have an impact on the financial statement of the company on which theaudit firm will express their opinion, the service will create advocacy threat or self-review threat. 1.3Recommendations - significance of created threat shall be evaluated and if it is notsignificant clearly safeguards shall be considered and applied. The safeguard includes– (i) carry on professional review for the valuation or audit work performed or (ii)making the arrangements in such way that the personnel offering such services willnot be included in the audit engagement.
Auditing and Assurance Assignment PDF_2

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