Business and Inherent risks of Chemeq Ltd.

I'm having problems in identifying the risk factors for Chemeq Ltd. --- Problem: You are the Senior Audit Partner of Cassidy and Sundance, Chartered Accountants. Your firm is one of the Big 4 accounting and audit firms in Australia and has significant experience in the audit of ASX listed companies and all industries. It is the 31st May 2006 and you have been approached by the Chief Executive Officer (CEO) of Chemeq Limited about conducting the audit of the company for the 2005/06 financial year, and subsequent financial years. Some issues have emerged with the current auditors which have meant that new auditors need to be located. Ms Etta Place, the Managing Partner of Cassidy an... click for more

Ethics and integrity in auditing, 2 X Case Studies (Professional Auditing). Total: 2.5 pages. Need help from 'Auditing professional'

Need help from 'Auditing professional' ***Case study 1:****(see attachment for the case) Required: Outline five ethical issues relevant in assessing the relationship with the company and in deciding whether to continue offering the current range of services to this client. Cite relevant references where appropriate. (No introduction, no conclusion, straight to the main point, 1 page, may use ‘Accounting and Auditing handbook 2005-2006 volume 2 of CPA or CA version as reference) ***Case study 2:***(see attachment for the case) Required: For each of the independent situations (1) to (4): (a) List any professional standards and regulatory requirements breached. (b) Advis... click for more

Auditing (Revenue Recognition)

Judgments about whether revenue should be recognized are among the most contentious that an auditor faces. Following are a number of situations in which the auditor will be required to either acquire additional information or make decisions about the amount of revenue to be recognized. Required: a. Identify the primary criteria the auditor should use in determining revenue to be recognized. b. For each of the scenarios: • Identify the key issues to address in determining whether revenue should be recognized. • Identify additional information the auditor may want to gather in making a decision on revenue recognition. • Based only on the information presented, develop a rationale for ... click for more

10:59- Auditing:Chapter 10 Auditing Revenue and Related Accounts

*10-59 (Misstatements and Controls) Field, CPA, is auditing the financial statements of Miller Mailorder, Inc. (MMI) for the year ended January 31, 2006. Field has compiled a list of possible errors and fraud that may result in the misstatement of MMI’s financial statements, and a corresponding list of internal controls that, if properly designed and implemented, could assist MMI in preventing or detecting the errors and fraud. Required For each possible error and fraud numbered 1 through 15, select one internal control procedure from the lettered answer list that, if properly designed and implemented, most likely could assist MMI in preventing or detecting the errors and fraud. Eac... click for more

10-63 Auditing Revenue and Related Accounts

10-63 (Testing Controls) Following is a list of controls typically implemented in the processing of sales transactions. Required a. For each control identified, briefly indicate the financial misstatement that could occur if the control is not implemented effectively. b. Identify an audit procedure to test for effectiveness of the control. Controls Typically Found in Sales Processes 1. Authorization:All transactions under $10,000 may be approved by a computer authorization program.The credit manager must approve all transactions over $10,000. 2. All invoices are priced according to the authorized price list maintained on the computer. Either the regional or divisional sale... click for more