You are an audit partner of Thomas Yeo & Co. and have been newly allocated the audit of Golden Ltd, a listed company which has been an audit client for eight years. You have been informed that the father of a new audit trainee assigned to the Golden Ltd audit team owns a 5% interest in Golden Ltd. Which of the following safeguards are appropriate in this situation? I. Thomas Yeo & Co. should resign from the current period audit engagement II. Disposal of the interest by the audit trainee’s father III. Independent reviews of the audit work performed by the audit trainee IV. Removal of the audit trainee from the Golden Ltd engagement Question 7 options: 1) I, II and IV 2) II, III and IV 3) I, II and III 4) I, III and IV
You are an audit partner of Thomas Yeo & Co. and have been newly allocated the audit of Golden Ltd, a listed company which has been an audit client for eight years. You have been informed that the father of a new audit trainee assigned to the Golden Ltd audit team owns a 5% interest in Golden Ltd. Which of the following safeguards are appropriate in this situation? I. Thomas Yeo & Co. should resign from the current period audit engagement II. Disposal of the interest by the audit trainee’s father III. Independent reviews of the audit work performed by the audit trainee IV. Removal of the audit trainee from the Golden Ltd engagement Question 7 options: 1) I, II and IV 2) II, III and IV 3) I, II and III 4) I, III and IV
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
You are an audit partner of Thomas Yeo & Co. and have been newly allocated the audit of Golden Ltd, a listed company which has been an audit client for eight years. You have been informed that the father of a new audit trainee assigned to the Golden Ltd audit team owns a 5% interest in Golden Ltd.
Which of the following safeguards are appropriate in this situation?
I. Thomas Yeo & Co. should resign from the current period audit engagement
II. Disposal of the interest by the audit trainee’s father
III. Independent reviews of the audit work performed by the audit trainee
IV. Removal of the audit trainee from the Golden Ltd engagement
Which of the following safeguards are appropriate in this situation?
I. Thomas Yeo & Co. should resign from the current period audit engagement
II. Disposal of the interest by the audit trainee’s father
III. Independent reviews of the audit work performed by the audit trainee
IV. Removal of the audit trainee from the Golden Ltd engagement
Question 7 options:
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