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(solved) Zara and Company - PDF

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Added on  2020-10-22

(solved) Zara and Company - PDF

   Added on 2020-10-22

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ZARA AND COMPANY
(solved) Zara and Company - PDF_1
Table of ContentsINTRODUCTION...........................................................................................................................11. Identifying and discussing quality control, ethical and professional issues raised withrelation to audit of Simpson Co..................................................................................................12. Recommend actions to be taken for identified issues.............................................................2CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4
(solved) Zara and Company - PDF_2
INTRODUCTIONAuditing process checks the adherence of financial position of company. Present reportdeals with Zara, a global accounting firm which is carrying out audit of its client Simpson Co.This report will discuss quality control, ethical and professional issues in audit of client.Moreover, recommendations will be provided for resolving issues.1. Identifying and discussing quality control, ethical and professional issues raised with relationto audit of Simpson CoQuality ControlThe firm is required to adhere to system of quality control which includes policies andprocedures addressing ethical requirements, monitoring and other factors in effective manner. Itcan be analysed that Simpson Co has not carried out review procedures which should have beencomplied. Moreover, samples were selected randomly to reduce time and as a result, statisticalmethods were not being used in the firm. The quality control needs to be adhered in relation toASQC (Auditing Standard Quality Control) 1 prepared by AASB (Auditing and AssuranceStandards Board) of Australia. The standard applies to firm performing an audit of financialreport for a particular financial year of company (ASQC 1 Auditing Standard ASQC 1 QualityControl for Firms that Perform Audits and Reviews of Financial Reports and Other FinancialInformation, Other Assurance Engagements and Related Services Engagement. 2013). The standard requires monitoring firm's quality control procedures and policies. Ongoingconsideration and evaluation of quality control needs to be followed. It can be assessed thatparticular statistical method should have been implemented for carrying out research with takensample. The deficiencies need to be carried out and proper action is to be taken (McGrath andLoper, 2018). Zara should communicate the same to engagement partners and other professionalfor maintaining quality of the audit and take corrective action for monitoring purpose in effectualmannerEthical and Professional IssuesAPESB (Accounting Professional & Ethical Standards Board) has issued APES 110 codeof ethics for professional accountants laying down fundamental principles such as- Integrity-1
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