60.1K

Verified Solution

Link Copied!

Ruby, a partner in a small but busy audit firm, was approached to perform an audit for gbox Ltd while attending a function where she met the managing director of gbox Ltd, Dan.  gbox ltd is a large manufacturer of gaming machines and has been named in a recent FMA anti corruption enquiry. The company is suspected of offering incentives to government officials to support a proposed bill to allow an increased number of gaming machines in a licensed premises. No charges have yet been laid against gbox ltd or its management. gbox ltd's existing auditors were reappointed for the current financial year at the annual general meeting 2 months ago. However, gbox ltd managing director is unhappy with the existing auditing firm as the audit partner assigned to gbox ltd has been changed and he feels that their fees are too high.

 

Required:

1. identify and briefly explain at least 4 issues present in the scenario above that should be considered by ruby to satisfy proper client acceptance requirements before accepting the request to perform the audit of gbox ltd. at least 2 issues should relate to client specific matters and at least 2 issues should relate to auditor specific matters.

 

2. briefly explain what rubys responsibilities are towards the existing auditors if she decides she would like to proceed further with client acceptance.

 

3. explain why Ruby is required to issue an engagement letter if she decides to accept the engagement and identify at least 3 key matters that should be included in this document.

Answer & Explanation Solved by verified expert

See Answer