EBK AUDITING & ASSURANCE SERVICES: A SY
11th Edition
ISBN: 9781260687668
Author: Jr
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Chapter 19, Problem 19.27P
1
To determine
Introduction: The non-audit services are provided by an auditor which are unrelated to the primary audit services and include consultancy, tax planning, internal audit management and all the services other than auditing or reviewing of the financial statements of the company. The Securities and Exchange Commission has listed some of the non-audit services that an auditor cannot perform.
To prepare: The summary of non-audit services that the auditor can include in the proposal that would not violate the SEC’s independence rules.
2
To determine
Introduction: The non-audit services are provided by an auditor which are unrelated to the primary audit services and include consultancy, tax planning, internal audit management and all the services other than auditing or reviewing of the financial statements of the company. The Securities and Exchange Commission has listed some of the non-audit services that an auditor cannot perform.
To prepare: The additional non-audit services that the auditor can include in the proposal for a non-public client.
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The Bingabong CPA firm is swamped with work and is considering doing some outsourcing of tax work to a third-party service provider (TSP). Which of the following is an accurate statement regarding its responsibilities?
Group of answer choices
a. Outsourcing work to TSPs can threaten independence, but not objectivity or integrity.
b. Outsourcing work to TSPs that provide only administrative support will likely not threaten objectivity and/or integrity.
c. If Bingabong uses TSPs to perform substantive services and those TSPs are reputable, it need not inform clients before sharing confidential client information with the TSPs.
d. If a client objects to Bingabong outsourcing services, Bingabong should investigate whether the client has legitimate grounds before proceeding.
Maple & Co, chartered accountants, is suffering from declining revenue, and as a result of this, another audit manager has been asked to consider how to improve the firm’s profitability. In a conversation with you this morning he mentioned the following:“We really need to make our audits more efficient. I think we should fix materiality at theplanning for all audits, as this would reduce the work we need to do. I also think we can cut the firm’s overheads by reducing our spending on training. We spend a lot on expensive training courses for junior members of the audit team, and on Continuing Professional Development for our qualified members of staff.We could also guarantee our clients that all audits will be completed quicker than last year.Reducing the time spent on each assignment will improve the firm’s efficiency and enable us to take on more audit clients.”Required:Comment on the practice of Maple & Co. and quality control issues raised by the audit manager’s suggestions…
Chapter 19 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
Ch. 19 - Prob. 19.1RQCh. 19 - Prob. 19.2RQCh. 19 - Prob. 19.3RQCh. 19 - Prob. 19.4RQCh. 19 - Prob. 19.5RQCh. 19 - Prob. 19.6RQCh. 19 - Prob. 19.7RQCh. 19 - Prob. 19.8RQCh. 19 - Prob. 19.9RQCh. 19 - Prob. 19.10RQ
Ch. 19 - Prob. 19.11RQCh. 19 - Prob. 19.12RQCh. 19 - Prob. 19.13RQCh. 19 - Prob. 19.14MCQCh. 19 - Prob. 19.15MCQCh. 19 - Prob. 19.16MCQCh. 19 - Prob. 19.17MCQCh. 19 - Prob. 19.18MCQCh. 19 - Prob. 19.19MCQCh. 19 - Prob. 19.20MCQCh. 19 - Prob. 19.21MCQCh. 19 - Prob. 19.22MCQCh. 19 - Prob. 19.23MCQCh. 19 - Prob. 19.24MCQCh. 19 - Prob. 19.25MCQCh. 19 - Prob. 19.26MCQCh. 19 - Prob. 19.27PCh. 19 - Prob. 19.28PCh. 19 - Prob. 19.29PCh. 19 - Prob. 19.30PCh. 19 - Prob. 19.31P
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