Unformatted text preview: Notice which members of the audit team are involved in client discussions of matters that might be seen as "sensitive." 5. Management letter comments (suggestions) may arise from any phase of the audit engagement. Discussion questions: 1. What changed circumstances are discovered in Act IV? What are the audit implications? 2. What material F/S misstatements were identified in Act IV? What else was discovered that might require F/N disclosure? 3. Why was the chairman of CableCo so adamant that the proposed disclosure not be made? How do the senior and the manager apparently differ in their attitudes about conflict resolution in this case? What options would PRS have had if their client would have continued to have refused to make the disclosure? 4. What M/L comments are evident from Act IV? From Act V?...
View Full Document
- Spring '08
- audit team, Audit Simulation Acts