URGENT! Major assignment Essay Example
AAA model refers to a system where an auditor adopts a methodology of authorization, authentication, and accountability when determining whether financial statements reflect a true and fair, view(mc Kissinger 2008).From the scenario above will issue a qualified audit opinion, since Darrys perspective and success seem to over rely on one customer, thus going concern risk. Darry’s shouting, jerry you have been an auditor, many neighbours work for the company?it’s an indicator of conflict of interest.
With such scenario, a risk based audit approach be adopted, since the client mind clearly seems to be compromised. Audit assertion in this case will be based on actions being executed under a thought. What will they think?. The course of action will be to carry out a comprehensive interview with thunder ltd to obtain a reasonable assurance as to whether the transaction relationships were based on vendor to customer or were compromised.
I will further request to peruse board of directors’ minutes to authenticate approval of auditor’s continuity in office, whether elements of favourism do exist. Will also check on authorization authority especially on thunderbolt ltd since it seems to be that on favourable ground will check on company’s provisions policies, whether they adequately cater and reflect according or in relation to other industry players as to what might prompt or cause deciduous ltd being put under administration.
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