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How To Write A Case 64 Pwc

Satisfactory Essays
Case 5.64

Julia Chulyakov, LLP, PWC
New York, NY
March 12, 2017
Board of Directors
Central Office Supply
New York, NY
Attention: Terry Puckett, CEO
I take your concerns with the doubling of the audit fees very seriously, therefore, it is my responsibility to explain to you the justification for the fee increase. You are probably aware of the fact that Sarbanes-Oxley Act and PCBO Auditing Standard No.5 introduced changes in the requirements for the issue of financial statements for public companies. In fact, under Section 302 of the Sarbanes-Oxley Act management of the company is required to assess its company’s internal control and present the report on internal control over the financial reporting. In the case where there is a material weaknesses in internal control, management needs to inform the public about it. Also, Section 302 stipulates that a company’s CEO and CFO will have to certify its company’s financial statements which means that there will be personal legal consequences if they present misleading financial statements. In addition, changes were made regarding the auditing process of internal controls of the company. These changes include the integration of the audit of internal controls with the audit of financial statements. In accordance to PCABO Auditing Standard No. 5, our team will have to conduct a multi-step audit process where we’ll have to plan the engagement, use a top-down approach, perform testing of controls, evaluate identified deficiencies, if there are any, in order to identify material weakness in internal control, and issue an opinion regarding the effectiveness of the internal control. Furthermore, to satisfy our adherence to new requirements we’ll have to produce
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Respectively yours, Julia Chulyakov, LLP,
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