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You are a senior manager in the audit department of Raven & Co. You are reviewing two situations which have arisen in respect of audit clients, which were recently discussed at the monthly audit managers’ meeting:
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You are the partner responsible for performing an engagement quality control review on the audit of Snipe Co. You are currently reviewing the audit working papers and draft audit report on the financial statements of Snipe Co for the year ended 31 January 2012. The draft financial statements recognise revenue of $8·5 million, profit before tax of $1 million, and total assets of $175 million.
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(a) You are the manager responsible for the audit of Dylan Co, a listed company, and you are reviewing the working papers of the audit file for the year ended 30 September 2012. The audit senior has left a note for your attention:
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Section B – TWO questions ONLY to be attempted
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You are an audit manager in Cedar & Co, responsible for the audit of Chestnut Co, a large company which provides information technology services to business customers. The finance director of Chestnut Co, Jack Privet, contacted you this morning, saying:
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(c) Maxwell Co is audited by Lead & Co, a firm of Chartered Certified Accountants. Leo Sabat has enquired as to
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You are an audit manager responsible for providing hot reviews on selected audit clients within your firm of Chartered
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5 You are the manager responsible for the audit of Blod Co, a listed company, for the year ended 31 March 2008. Your
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The finance director of Blod Co, Uma Thorton, has requested that your firm type the financial statements in the form
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4 You are an audit manager in Smith & Co, a firm of Chartered Certified Accountants. You have recently been made
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