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- April 18, 2020 at 1:29 pm
I. Why providing recruitment service will give rise to intimidation threats? for not appointing/recommend the external auditor next year?
ii. Can I have an example for the professional benefits of accepting the assignment? increase the non-engagement related fees for the audit firm?
iii. How the reduction in sales and the expense relating to the repair of $46m being calculated? no mention in the question?
Thank you.April 20, 2020 at 8:46 am
Please remember to give FULL Q reference (year missing).
(i) Say the auditor were to recruit/select a candidate for the position of finance director to a client company. And the auditor tells the CEO of the client that this person really knows their stuff and is the best person for the job. Imagine then that on a matter of judgment the FD proposes something and the auditor disagrees – the CEO then pressures the auditor to agree with the FD’s judgment – “after all – you said he was the expert”.
(ii) I guess the examiner is saying that credit would be given for saying that the fee would be a matter to consider.
(iii) There aren’t many options – if given numbers in a Q you should try to make use of them – otherwise you could be missing something. $46m is $111m – $65.
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