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1. if we(audit firm) provide audit to a client called XYZ Ltd, and if the XYZ Ltd wants use to provide non audit service, doesn’t self interest threat arises ? because we will receive more fees from the client by providing additional service and we can’t act independently because we might be afraid we lose the client if the outcome do not meet the client’s standard.
How about when we provide non-audit service for the client at first, and they asked s if we can provide audit service for them. Does self interest threat arise as well ?
2. IFRS 15 revenue from contracts with customers states that, there are indicators for the transfer of control and it says that “entity has a present right to payment for the asset”
This means the entity has a present right to receive payment for the asset right ? since the customer has accepted the asset by paying certain sum of money to the seller3. May i know what is the difference between correspondence and external confirmation ? external confirmation is like a confirmation obtained from external party but i can’t seem to grasp what is correspondence…. is it possible to provide just simple example ? because external confirmation can be an email but i’m not sure what correspondence can be
4. if a matter is material and pervasive, it’s a material uncertainty related to going concern ?
1 This is covered in our notes amd lectures on ethics.
2 Yes.
3 Correspondence is just letters and emails that occurred during the year eg betweenma client and their customers. Confirmation is usually a direct written answer to an auditor’s query.
4 Rubbish. Read our notes and listen our lectures kn audit reports.
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