Auditors' Independence: Ethical Threats & Safeguards - K & K Chartered Professional Accountants

Assignment Task

Assignment Content
Instructions:

Please refer to the following before writing your answers:

There are two cases in this assessment. Both cases are compulsory. Your work should be in a clear font (Arial, Calibri, or Times New Roman etc.) with a 12-font size. Use double spacing and 1-inch margins. You are required to provide proper in-text citations and include a references page at the end. (You may use APA or Harvard style for referencing). Check for plagiarism (SafeAssign score must be "low risk") before you submit your "Final Version" of work. Submit your assignment as a "word" document with the file name as: "your name-final version". Do NOT email your assignment, as emailed work will NOT be graded. Please note that assignments without proper in-text citations, detailed references & submitted late will NOT be graded, unfortunately.

Case one: K & K Chartered Professional Accountants is a GTA based audit firm owned by two partners. Assume, you are one of the partners at the K & K Chartered Professional Accountants (audit firm), and you are dealing with various situations in relation to your firm’s audit clients. You are about to sign engagement letters with the following clients for the upcoming audit of financial statements.
• Situation 1 – PQ Ltd. Your firm has recently completed the project of designing & implementation of accounting, bookkeeping & internal control system for your client PQ ltd.
• Situation 2 – WX Ltd. One of the senior audit managers (Mr. Z) in your audit firm has recently resigned and joined WX ltd as a CFO. WX ltd is your major client in terms of audit fee from many years, so one of the audit team members (Mr. Y) in your audit firm is suggesting to quote a very less audit fee this year to retain the client.

Required:
For each situation, discuss and explain:
a) The ethical threats to auditors' independence in general and specifically in context of these situations.
b) The necessary safeguards which you think should be in place (by assuming your firm wanted to continue with these clients, initially).

Case two: As your firm (K & K) is a registered training provider with CPA and have recently enrolled an audit trainee (CPA articling student) but she has some confusion about “Principles underlying the Financial statements Audit”.

Required: Explain “Principles underlying the Financial statements Audit” in detail. Use simple examples to help her understand, as this is a very important part of her training, learning and to work on audit assignments.

This Accounting and Finance Assignment has been solved by our Accounting and Finance Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing Style. Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered.
You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turn tin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.