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ACC707 Auditing And Assurance Services

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Question:

a. Four chartered accounting firms have been taking part in a quality assurance working paper review program. Under this review each firm reviews the working papers of another firm and the reviewer discusses the strengths and weaknesses of the audit with the auditor from the other firm.

b. Johan Geldens, a chartered accountant ,also runs an insurance agency which complements his auditing ,tax and superannuation services .He doesn’t use his own name on anything relating to insurance agency and has a highly competent manager,Janine Borg, who runs it .Geldens often requests that Borg review the adequacy of the client’s insurance with management if the client seems underinsured.

c. Edith Bailey , a public accountant in a small country town,runs a small partnership accounting firm which provides tax services,management advisory services ,bookkeeping services and conducts audits for the same client .Since the firm has only two partners and there are only two accounting firms in this town frequently  the same person  carries out these services over the last ten years .

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