ACC614 Auditing and Fraud Detection
Week 6 Discussion
DQ1 Client Request for Attorney Letter with Cole & Cole, CPA’s [CLOs: 1, 2, 5]. 1st Post Due by Day 3. Read problem 11.56 Client Request for Attorney Letter on pages 491 and 492 of the textbook. Describe the omissions, ambiguities, and inappropriate statements and terminology in Brown’s letter. Remember that this is Brown’s letter requesting a response to auditors, but it must request responses in the manner most useful to auditors. Reference this week’s lecture as a foundation for your post. Respond to at least two of your classmates’ posts.
DQ2 Audit of Group Financial Statements [CLOs: 1, 2, 5]. 1st Post Due by Day 3. Lando Corporation is a domestic company with two wholly-owned subsidiaries. Michael, CPA, has been engaged to audit the financial statements of the parent company and one of its subsidiaries and to serve as the group auditor. Thomas, CPA, has audited the financial statements of the other subsidiary whose operations are material in relation to the consolidated financial statements. The work performed by Michaels is sufficient for serving as the group auditor and to report as such on the financial statements. Michael has not yet decided whether to refer to the part of the audit performed by Thomas. Referencing this week’s lecture, please answer the following:
What responsibilities does Michael have with respect to Thomas when deciding whether to rely on the work of Thomas?
What are the reporting requirements with which Michael must comply in naming Thomas and referring to the work done by Thomas?
What report should be issued if Michael does not wish to assume responsibility for Thomas’s work or refer to Thomas’s work?
Respond to at least two of your classmates’ posts.
