Why auditor may choose not to stand for reelection

Assignment Help Financial Accounting

Reference no: EM133209464

SuperMart is one of Singapore's largest retailers with 64 stores located all across the island. SuperMart's chain stores are designed to provide customers with both "wet and dry" shopping options ranging from a wide assortment of live, fresh and chilled produce, such as seafood, meat, fruits and vegetables to packaged, processed, frozen and/or preserved food products as well as general merchandise, including toiletries and essential household products. Over the past decade, SuperMart has begun developing a selection of housebrands to offer its customers quality alternatives to national brands at substantial savings. To date, SuperMart has over 1,500 products under 23 housebrands (SuperMart Group 2021).

You are an audit manager in ABC LLP ("ABC"). ABC is an established professional accounting firm that provides audit, tax, and advisory services.

For purposes of this assignment, assume that there is an impending change in the auditor of SuperMart, and ABC has been invited to tender for the financial statement audit of SuperMart.

Question 1:

To your knowledge, the reason for the change in auditor is because SuperMart's predecessor auditor has chosen not to stand for election for another year. In other words, the predecessor auditor did not seek re-election.

a. Demonstrate four possible reasons why an auditor may choose not to stand for reelection. Apply your discussion to the context of SuperMart wherever possible.

b. Your audit partner would like you to help prepare an audit proposal for the tender. One of the items to be included in the audit proposal is the audit fees. Indicate four (4) factors that the audit firm would have to consider when setting the audit fees. Apply your discussion to the context of SuperMart wherever possible.

Reference no: EM133209464

Questions Cloud

Main source of either increase or decrease : Identify if they have an increase or decrease in cash for the most current year listed. Then identify the main source of either the increase or decrease.

Dividend paying stock and provide current stock price : Choose a dividend paying stock and provide the current stock price, the yearly dividend, and the dividend yield;

Major components of internal control system : Define the term "internal control" and identify the major components of an internal control system.

Interviewing for administrative position : Assume that you are interviewing for an administrative position at the organization. What is the greatest challenge you have faced at work?

Why auditor may choose not to stand for reelection : Demonstrate four possible reasons why an auditor may choose not to stand for reelection.

Interviewing for administrative position : Assume that you are interviewing for an administrative position at the organization. Describe your level of competency with computers

Advisory consulting engagement to identify control weakness : You are an internal auditor conducting an advisory consulting engagement to identify control weakness.

Providing independent assessment on risk management : Which of the following represents an objective examination of evidence for the purpose of providing an independent assessment on risk management

Discuss the amounts allocated to each marketing activity : Meet with colleagues to discuss the marketing budget. Discuss the amounts allocated to each marketing activity

User Account

All Pages