Memo 2, Auditing

Mr. Howe, a Junior Partner of the CPA firm Dewey,
Cheatem, & Howe (DCH), after noting that there is a proposal to limit Auditor liability is very excited and has announced that the DCH Audit firm will soon be able to take on much, much riskier audits with little risk of DCH going bankrupt or losing the right to audit.

Required: Mr. Tu Dewie has asked you to evaluate Mr. Howe''s assertions (use the lectures, tutorials, and the internet (i.e. http://www.clmr.unsw.edu.au/article/compliance/internal-risk-management/institute-chartered-accountants-stripped-liability-cap). In writing your memo, please remember that while Mr. Dewie is the senior partner of DCH, Mr. Howe (as a junior partner) can hurt you if you are not polite and considerate.
Posted Date: 9/7/2014 10:29:31 PM | Location : Australia







Related Discussions:- Memo 2, Assignment Help, Ask Question on Memo 2, Get Answer, Expert's Help, Memo 2 Discussions

Write discussion on Memo 2
Your posts are moderated
Related Questions
Q. Walkthroughs for auditor? Walkthroughs provide the auditor with evidence to: 1. Confirm auditor's understanding of the process flow of transactions. 2. Confirm auditor

Advantages and Disadvantages of Joint Audits The general disadvantages and advantages of joint audits as: Advantages 1. All fees and work are welcome to audit firms. 2. A

Auditor's Procedures - Going Concern In forming a thought on the going to relate position of a company, the auditors have to: a) Examine the company, its plans for the futu

Verification Procedures - Long-Term Liabilities a) Received a schedule detailing the sums due at the starting of the year, redemptions and additions and the sum due at the yea

Audit of Group Accounts The main problems can be split into three sections in this area as: 1. The audit of the holding company confirming and obtaining information concern

Subsequent Events - Audit Process IAS 10 Events after the Balance Sheet Date prescribes the accounting for, and disclosure of, events than the balance sheet date. Events th

The Use of Engagement Letters There is a contractual relationship among an accountant and his client. The accountant must therefore make sure that at the time he decided to exe

Kelley Brent, CA, is a partner in a one-office CA firm that audits Dane, Inc., a closely held corporation. Kelley''''s sister was recently appointed as the chief financial officer

factors that influence auditors judgement on sufficiency of audit evidence

Attempts to define True and Fair It must be concluded that there has been slight attempt precisely to define fair and true. The Companies Act needs an auditor to report in