This question has been answered by dkhetan on Nov 22, 2012. View Solution
joey505us posted a question Nov 22, 2012 at 9:48pm
You are having lunch with a member of the board of directors of a prospective client. You have just explained how the audit opinion adds to the confidence of financial statement users by providing reasonable assurance that the financial statements are free of material misstatements. The director then asks what additional benefits the company might attain from the audit and your expertise in the business and industry.

a. How would you respond to the director's questions regarding additional benefits that the company might attain from the audit and how they are communicated?

b. What precautions must the auditor take to ensure that he or she remains independent with respect to the audit engagement when providing value-added-services?
answered the question Nov 22, 2012 at 10:51pm
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QUESTION:
You are having lunch with a member of the board of directors of a prospective client. You have
just explained how the audit opinion adds to the confidence of financial statement users by...