You are the external auditor of National Detergent Company SAOG (NDC) is one of the leading manufacturing companies in the Sultanate of Oman. NDC manufactures and distributes a wide range of highly reputed and successful brands covering various segments like detergents powders, liquid detergents, soaps, shampoos, allied laundry aids and other household cleaners. As an Auditor of the company, answer the following questions. a) How do you arrive an opinion on its financial statements? Discuss

You are the external auditor of National Detergent Company SAOG (NDC) is one of the leading manufacturing companies in the Sultanate of Oman. NDC manufactures and distributes a wide range of highly reputed and successful brands covering various segments like detergents powders, liquid detergents, soaps, shampoos, allied laundry aids and other household cleaners. As an Auditor of the company, answer the following questions. a) How do you arrive an opinion on its financial statements? Discuss

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter14: Completing A Quality Audit

Section: Chapter Questions

Problem 15RQSC

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) You are the external auditor of National Detergent Company SAOG (NDC) is one of the leadingmanufacturing companies in the Sultanate of Oman. NDC manufactures and distributes a widerange of highly reputed and successful brands covering various segments like detergents powders,liquid detergents, soaps, shampoos, allied laundry aids and other household cleaners. As an Auditorof the company, answer the following questions.a) How can you ensure the reliability of its financial statements.
) You are the external auditor of National Detergent Company SAOG (NDC) is one of the leadingmanufacturing companies in the Sultanate of Oman. NDC manufactures and distributes a widerange of highly reputed and successful brands covering various segments like detergents powders,liquid detergents, soaps, shampoos, allied laundry aids and other household cleaners. As an Auditorof the company, answer the following questions.a) Do you think that the audit risk assessment is important? Justify your answer.
Your Audit team is preparing to audit a new client in the electronic retail industry. The client imports items from manufacturers in several Asian countries and retails in a chain of shops located throughout the country. You and your team members have access to the client's following information. · Prior period financial reports · Anticipated results for the current year · Industry Averages Required: Explain how you would use the information to understand your new client.
Oman United Engineering Services LLC (OUES) is one of the largest, multi-disciplined engineering, contracting and construction company in the Sultanate of Oman.Assume that you are an Internal Auditor of the Company and answer the following questions.a) Discuss the areas covered under the internal audit? b) Explain the procedures to be followed by you in conducting internal audit? c) What value does the Internal Audit Provide to the Company? Expain.
You are an auditor in BDO Australia, a mid-tier audit firm. One of your responsibilities is toreview ethical matters which have occurred in different audit engagements. Currently, you arereviewing the following audit engagement. Vivid Solution Pharmacy Ltd (VSP) is a discount beauty and health care product provider. Itis also one of the largest clients for BDO. BDO provides a range of services: taxation,consultancy, and financial statement audit to VSP. The total audit fee and other non-auditservice fees from VSP represent around 12% of BDO’s total revenue.The engagement audit team for VSP consists of 4 people. The audit partner is Brian. He hasbeen involved in the VSP audit for over 20 years and has partnered on the engagement for the last 15years. The audit manager is Alice. This is Alice’s first time on the VSP audit. She has noaccounting knowledge in the pharmaceutical industry and has never been involved with therecording or processing of accounting transactions in the…
You are an auditor in BDO Australia, a mid-tier audit firm. One of your responsibilities is toreview ethical matters which have occurred in different audit engagements. Currently, you arereviewing the following audit engagement. Vivid Solution Pharmacy Ltd (VSP) is a discount beauty and health care product provider. Itis also one of the largest clients for BDO. BDO provides a range of services: taxation,consultancy, and financial statement audit to VSP. The total audit fee and other non-auditservice fees from VSP represent around 12% of BDO’s total revenue. The engagement audit team for VSP consists of 4 people. The audit partner is Brian. He hasbeen involved in the VSP audit for over 20 years and has partnered on the engagement for the last 15years. The audit manager is Alice. This is Alice’s first time on the VSP audit. She has noaccounting knowledge in the pharmaceutical industry and has never been involved with therecording or processing of accounting transactions in the…
You are the external auditor of Suleman and Stock Ltd. The CEO, Ahsan Suleman, has contacted you because the company is considering setting up an internal audit department for the first time and he is looking for some guidance as to what is required for an effective internal audit department. Required: Explain the key considerations Ahsan Suleman should consider when setting up an internal audit department.
Wise Limited has an online platform for purchase and sale of goods and services which connects customers all around the world. It provides additional services of invoicing and data collation for sellers on the platform. Sellers process sales orders and transport the orders to the customers. Payment is made through the platform directly to the seller for which Wise limited collects a fee for invoicing services Further to the requirement of the Code of Corporate Governance Wise limited has decided to change its auditors after a period of 10 years. Your firm was approached and due process followed in the appointment of new Auditors including appropriate professional clearance. The audit is now set to commence. You are the Audit Manager responsible for this engagement but some of your Team members are not conversant with controls in on-line businesses. b. A computer-based information system is expected to have general IT controls in place. Discuss the main categories of general IT…
Phillip Dale is a recent employee of RMGT Audit Firm. A new client Juicy Juice Limited has approached RMGT for the audit of its annual reports and Phillip was asked to start the preparation of the audit plan. Phillip knows only too well the importance of audit planning. It involves many considerations that help to develop more efficient engagements and provides auditors with important risk management techniques. Juicy Juice Limited operates in many overseas countries. The company employs over 2000 employees and is known for providing many great benefits for its employees. One of Juicy Juice’s biggest assets is its inventory as the company offers a large variety of products throughout the many overseas countries in which it operates. The company also regularly purchase shareholdings in other companies. The previous auditors of Juicy Juice have stated that the previous year’s audit had revealed extensive material misstatements. Questions A. Discuss FOUR (4) of the…
You are the outsourced internal auditor of a large multinational company operating in the energy sector. Your company has operations in 30 different countries, some of which are developing economies, and it has raised debt finance, as well as equity finance, in 15 of these countries. You are aware that there has been protests from environmental lobby groups in several areas regarding oil pipelines. There has also been demonstrations about the impact of operations on local communities. Your company has an audit committee, and a reasonably well-developed system of internal control loosely structured around the Turnbull Report's recommendations. However, the board has decided that perhaps it should form a new committee, a 'risk committee', which will deal with risk management and internal control specifically. Required: The Board has requested a report, which explains and identifies the main risks facing the business currently, and the relative importance of these risks to the business,…
You are an audit manager at Carillion & Associates and have been assigned to the audit of Colette Hayman Ltd (CHL) for the year ending 30 June 2020. CHL is an Australian manufacturer, wholesaler and retailer of women’s handbags and shoes. CHL manufactures all its products at its Melbourne factory and sells via retail outlets throughout Australia. CHL is listed on the Australian Securities Exchange, and Carillion & Associates has been its auditor for several years. In recent years, CHL has been finding it difficult to meet its projected profit forecasts due to increased competition from new local competitors, imported products and online shopping; the increasingly high Australian dollar; and the impact of the global and USA financial crisis on consumer spending. During the planning stage of the audit, you become aware of the following matters: 1. CHL has significant loans from its bank. The bank has indicated that it is concerned about CHL’s ability to meet specific loan…
You are an audit manager at Carillion & Associates and have been assigned to the audit of Colette Hayman Ltd (CHL) for the year ending 30 June 2020. CHL is an Australian manufacturer, wholesaler and retailer of women’s handbags and shoes. CHL manufactures all its products at its Melbourne factory and sells via retail outlets throughout Australia. CHL is listed on the Australian Securities Exchange, and Carillion & Associates has been its auditor for several years. In recent years, CHL has been finding it difficult to meet its projected profit forecasts due to increased competition from new local competitors, imported products and online shopping; the increasingly high Australian dollar; and the impact of the global and USA financial crisis on consumer spending. During the planning stage of the audit, you become aware of the following matters: 1. CHL has significant loans from its bank. The bank has indicated that it is concerned about CHL’s ability to meet specific loan…