Seminar 12 - Audit Completion

School: Nanyang Technological University - Course: ACC 2104 - Subject: Accounting

SSA600 Group Audit: using the work of the component auditor, applies only if the component cannot be part of your network (do they have a license, are they qualified auditors?) What if you are not happy with the component auditor's work? Weak risk assessment and procedures not in accordance with standards, not enough? What can you do in Singapore? Contact the Thai auditor, let them know what is lacking and propose additional procedures. They are likely to comply and listen to the parent company's auditor. Modified except for if company dw to pay for the redoing of work because it is expensive but inform TCWG the need to redo work but expensive -Component auditor in Thailand/Bangkok, are you member of CPA/Thai authorities? To check competence of auditors -SSA600 does not apply to Big 4 as they have officers all around the world When doing group audit, should you accept the job in the first place, expected to do acceptance I: Integrity of management, who is the client, who is the company C: Competence E: Ethics, are there any threats in the story that could give rise to self-interest, advocacy, familiarity threat 610: Using the work on an internal auditor 620: Using the work of an expert Structure: What is the problem? Identify 5 items MUST CONSIDER OWN'S AUDIT FIRM RESOURCES, IN CASE NEED TO FLY IN AND DO THE WORK, IF NOT DONT ACCEPT THE CLIENT, TRANSALTION, CULTURAL ISSUES > link it to competence When doing group audit, risk of MM at other country could be so high that the Singapore auditor rather not take > who are these clients, what business are they in? Drug trafficking, money laundering part of the Thailand culture, not in Singapore, must consider the business and law and you yourself will be implicated if you accept and sign it off Seminar Requirements 1.Jack Wood is the engagement partner for the financial statements audit of Clayton Ltd for the year ended 31 December, 20X8. The following material events or transactions came to Wood's attention before he is scheduled to issue his report on 28 February, 20X9. None of the events or transactions are reflected in the financial statements for the year ended 31 December, 20X8. Required: For each of the above events or transactions, discuss audit procedures that should have brought the item to the auditor's attention, and indicate the treatment required in the financial statements. Give reasons for your decision.

Seminar 12: Audit Completion 2(i)On 3 January, 20X9, Clayton Ltd received a shipment of raw materials from Bangkok. The materials had been ordered in October 20X8 and shipped FOB shipping point in November 20X8.