Reference no: EM132517557

Point 1: You have completed your audit of Matibay Construction Company for the year ended March 31, 2015, and have scheduled a meeting with the company's audit committee for the next day. The company builds townhouses in Metro Cebu and has been only marginally profitable during the last five years. Matibay uses the percentage-of-completion method to recognize revenue, and although you were generally satisfied with the overall fairness of the financial statements after your audit last year, you believe the company tends to be optimistic in estimating the stage of completion of its work-in-progress.

Point 2: You did not receive the assistance you anticipated from the company's internal auditors because they were working on a special project for the controller. This resulted in your performing more work, which resulted in a higher-than-anticipated audit fee. The client protested the higher audit fee but has agreed to pay it.

Point 3: One of Matibay's competitors issued its annual report a week before Matibay. The president has asked that you complete next year's audit two weeks earlier than this year so that Matibay can issue its annual report first. You worked an excessive amount of overtime just to meet this year's deadline.

Required:

Question 1: Outline of all the points you would like to discuss with the audit committee.