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Example text

The audit of the consolidated financial statements for the year ended 28 February 20X3 is nearing completion. You are a manager in the audit department of Kennel & Co, and you have just received a note from Barry Bark, one of the audit partners: 'I need your help with a couple of matters relating to the Retriever Group. The audit engagement partner has fallen ill and I have taken on responsibility for this client. co m 'I was given the task of auditing the goodwill which arose on an acquisition made during the year.

When I was on my initial training course, there was a session on ethics in which the presenter talked about being intimidated by a client. I assume this does not mean physical intimidation, so what is an intimidation threat? (3 marks) (ii) I know that Peaches & Co is facing competition from a new audit firm, and that our firm is advertising its services in a national newspaper. What are the rules on advertising for new clients? (3 marks) (iii) I heard one of the audit managers say that our firm had lost an audit client to a competitor because of lowballing.

Recommend the procedures that should be performed on the cash flow forecast for the three months ending 31 March 20X0 in order to provide an assurance report as requested by Apricot Ltd. (11 marks) (b) Explain the main contents of the report that will be issued on the prospective financial information. com 24 Poppy (12/08) (a) 36 mins Financial statements often contain material balances recognised at fair value. For auditors, this leads to additional audit risk. Required (7 marks) Discuss this statement.

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