AUDITING-URGENT

2007-07-13 8:59 am

Comment on the independence and objectivity the audit firm in each of the above cases, and advise the action to be taken by the audit firm (where necessary).

3. Due to financial problems, an audit client has not settled its audit fees for the last three audits. The auditor is planning to start the current year's audit.

回答 (1)

Pui Sang Phoebe

2007-07-14 1:46 am

✔ 最佳答案

based on the fact that this client is not paying the fee
there are a few factors that you must be aware

1. the client's firm might come across going concern problem

2. the client might be a risky client

3. the current year's audit engagement is at a high level of risk

what you can do is

1. mail the client with the accounts and check with the client/ client's staffs
and see if the client is aware of the unpaid account

2. since the unsettled fee has been accumulated for 3 audits so there is a very high chance of the client not paying for this coming audit too , the firm has all the right to refuse the engagement until the previous accounts has been settled.

參考: my textbook

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