You have recently been appointed as auditor to Johnson Plc; a company whose shares are traded on the Stock Exchange. The Directors of Johnson Plc have recommended that you perform the following services . (i) The statutory audit of the annual financial statements. (ii) Taxation services, and (iii) Consistency services in respect of the implementation of a new information technology system Your firm has not acted for Johnson Plc before but does act as auditor for one of the major competitors. (c) A client’s affairs should not be disclosed to third parties. However where a client has been guilty of an unlawful act, to whom should the auditor disclose this, and in what order ?
You have recently been appointed as auditor to Johnson Plc; a company whose shares are traded on the Stock Exchange. The Directors of Johnson Plc have recommended that you perform the following services . (i) The statutory audit of the annual financial statements. (ii) Taxation services, and (iii) Consistency services in respect of the implementation of a new information technology system Your firm has not acted for Johnson Plc before but does act as auditor for one of the major competitors. (c) A client’s affairs should not be disclosed to third parties. However where a client has been guilty of an unlawful act, to whom should the auditor disclose this, and in what order ?
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter1: Auditing: Integral To The Economy
Section: Chapter Questions
Problem 21MCQ
Related questions
Question
You have recently been appointed as auditor to Johnson Plc; a company whose
shares are traded on the Stock Exchange. The Directors of Johnson Plc have
recommended that you perform the following services .
(i) The statutory audit of the annual financial statements.
(ii)
(iii) Consistency services in respect of the implementation of a new information
technology system
Your firm has not acted for Johnson Plc before but does act as auditor for one of the
major competitors.
(c) A client’s affairs should not be disclosed to third parties. However where a client
has been guilty of an unlawful act, to whom should the auditor disclose this, and
in what order ?
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