Ajax Inc. is a public company ad a new client of HawtornePartners, a medium-sized...

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Ajax Inc. is a public company ad a new client of HawtornePartners, a medium-sized audit firm. Jeffrey Rush is the engagementpartner on the audit and has asked the members of the audit team tobegin the process of gaining an understanding of the client, inaccordance with AS 2110. One audit manager leads the groupinvestigating the industry and economic factors, and another helpsJeffrey consider issues at the entity level. Jeffrey will holddiscussions with members of the audit committee and will discuss awide range of issues. He has a meetig arranged for next week withthe four members of the audit committee, including the chair of tecommittee, Stella South, who like the other members of the auditcommittee, is an independent director.
Required
a. Make a list of the main factors that will be considered byeach audit manager's group.
b. Based on the above information, can you conlude that AjaxInc. complies with Section 301 of the Sarbabes-Oxley Act regardigits audit committee? Explain.

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2 reasons risk management is so critical to auditors because its fundamental to client acceptance and resource allocation client acceptance auditors will only accepted clients that have managed their risks well unless the client is See Answer

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In: AccountingAjax Inc. is a public company ad a new client of HawtornePartners, a medium-sized audit...Ajax Inc. is a public company ad a new client of HawtornePartners, a medium-sized audit firm. Jeffrey Rush is the engagementpartner on the audit and has asked the members of the audit team tobegin the process of gaining an understanding of the client, inaccordance with AS 2110. One audit manager leads the groupinvestigating the industry and economic factors, and another helpsJeffrey consider issues at the entity level. Jeffrey will holddiscussions with members of the audit committee and will discuss awide range of issues. He has a meetig arranged for next week withthe four members of the audit committee, including the chair of tecommittee, Stella South, who like the other members of the auditcommittee, is an independent director.Requireda. Make a list of the main factors that will be considered byeach audit manager's group.b. Based on the above information, can you conlude that AjaxInc. complies with Section 301 of the Sarbabes-Oxley Act regardigits audit committee? Explain.