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Assignment Task

1. One of the accountants intended to be part of the 2021 audit team owns shares in MSHG. The accountant’s interest is not material to him.
 

2. Chan and Partners was previously engaged by MSHG to value its intellectual property. The consolidated balance sheet (statement of financial position) as at 30 June 2021 includes intangible assets of $30 million, which were valued by Chan and Partners on 1 March 2021 following MSHG’s acquisition of the subsidiary Shady Oaks Hospital. The intangibles are considered material to MSHG.
 
Required:

Discuss the risks to the auditor. Your answer should be separated by key headings and should be no more than 300 words.

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