Module 1 Assignment
Student Number: 6121187
Name: Qian Wang
Question 1
a. 1
b. 1
c. 2
d. 4
e. 1
f. 4
g. 4
h. 4
i. 1
j. 4
Question 2
Memorandum
To: Edward Sloane, Senior Audit Partner
From: David Mynarski, CGA
Date: January 31, 20X4
Re: Feedback on approach to the audit engagement of Vehicles for Hope Limited
I would like to have your feedback on my approach to the audit engagement of VHL. Here is my analysis and a recommended course of action for each of the issues I have outlined below.
Impact on Audit Engagement
There are some key risks that facing by VHL which may impact on the audit engagement. During last year, VHL had a few problems with late and incomplete expense reports submitted by board members. These expense reports are expected to submit from board members on a timely basis. And sometimes board members lose their receipts for the expense claim. Because of lack of supporting documentations and delays in claim submission, it makes the engagement more difficult to analysis and performs.
Objectivity and Independence Issue
I have been VHL’s auditor for five years and have been developed closed friendship with some of board members. I have a concern regards to the auditor’s objectivity and independence of the engagement. I recommend that another auditor in the firm to perform the engagement or he or she can assess any potential issues to determine if there is a conflict of objectivity and independence of the engagement.
Internal Control Issue
VHL has two paid staff members, an office accountant and an administrative assistant. There is an issue regarding to segregation of duties. The accountant is responsible for all accounting procedures. The fraud risk is high if there is no second person get involved to perform these duties. I recommend VHL to reconsider the staff members’...