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) Do you think that the audit risk assessment is important? Justify your answer.
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) 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) Do you think that the audit risk assessment is important? Justify your answer.
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- 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.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 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 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 a CPA and you are the CFO (Chief Financial Officer) of USB Computer Technologies Inc., a company that specializes in customized business software. You have been requested by the board of directors of the company to attend its meeting. During the meeting, one of the directors asked you, "Why audits of our company performed by different auditors (internal, external, government). Before you could answer question, another direfctor mentioned "it would be more cost-efficient if our internal auditors will performed all the audits. " Requirements. Write down your reply to each question of the members of the board of directors. In relation to your answer in number 1, identify the issues that must be explained to the Board.GORAB & Associates, a local auditing firm in Ghana, has just accepted a new privately held company (Adepa Ltd) as its client. The company is considered as one of the largest in the sub region. It is well known in the real estate industry and its owner, Sir One, sponsors the Ghana Premier League (GPL) with the company’s logo and name on the players’ jerseys. Since the company is well known, the audit partners concentrated on the scope and price of the engagement. The auditors are well aware of the previous auditors, but given the reputation of the company, they did not feel a need to contact the predecessor auditors because it was a routine “bid for audit” and the current auditors were also bidding. The auditors, thus, did not find it necessary to write an engagement letter. After beginning the audit, the auditors find out the following: a) The audit committee was not involved in the decision to change auditors and only one of the three audit committee members are outside directors.…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…
- Noda plc (‘Noda’) is a large company which your firm has justaccepted as a new client. You are the audit manager for Nodaand are planning the audit for the year ended 31 December20XY. The principal activity of the company is the manufactureand sale of mobile phones and associated software. Noda isbased in the UK but manufactures the phones in China andsells its product all over the world.You are conducting initial planning and risk assessment workand have discovered the following information:i. Draft Figures for the Year Ended 31 December 20XYManagement accounts indicate that the revenue for the yearhas fallen by 25% compared with the previous year followingconcerns that Noda is using an operating system for its phonesthat is unpopular with customers. Noda has entered into acontract with the operating system supplier that lasts foranother two years. Withdrawal from the contract could meanthat Noda would have to make significant penalty payments tothe operating system supplier.ii.…Noda plc (‘Noda’) is a large company which your firm has justaccepted as a new client. You are the audit manager for Nodaand are planning the audit for the year ended 31 December20XY. The principal activity of the company is the manufactureand sale of mobile phones and associated software. Noda isbased in the UK but manufactures the phones in China andsells its product all over the world.You are conducting initial planning and risk assessment workand have discovered the following information:i. Draft Figures for the Year Ended 31 December 20XYManagement accounts indicate that the revenue for the yearhas fallen by 25% compared with the previous year followingconcerns that Noda is using an operating system for its phonesthat is unpopular with customers. Noda has entered into acontract with the operating system supplier that lasts foranother two years. Withdrawal from the contract could meanthat Noda would have to make significant penalty payments tothe operating system supplier.ii.…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…