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Unformatted text preview: Student Name: Zhu Mei Student Number: 995984001 UTORid: zhumei My Role: Staff Accountant of an accounting firm User of the report: MQ Financial Regarding: Audit report of GMI prepared by B&C As one of the staff accountants in an accounting firm, our fundamental professional responsibility is to provide professional opinion based on the company’s financial statements and other working papers we audit. We should make sure our audit does not violate Canadian generally accepted auditing standards (GAAS) as well as our professional responsibilities. Here, I am asked by my partner to review the audit report of GMI prepared by B&C, to find out the legal liabilities B&C owes to MQ Financial. All of myy opinion will be complied with GAAS and my professional conduct. There are a few ethical issues needed to be discussed. Since CAS 200 requires auditors to comply with relevant professional ethical requirements. Here, we should look at Rules of Professional Conduct (ROPCs). 1. The ROPCs 204 state that auditors should behave independently relating to audit engagement. This requirement may not have been met because: The lead partner Earl has been on the GMI engagement for the last 2 years, this is the third year he works with GMI. This causes a familiarity issue because his two years’ experience with the same client may influence his professional independent behaviour. The evidence proves his professional behaviour lack of independence, is he signed the unqualified audit report which clearly shouldn’t be signed, and failed to report a major business risk of GMI to MQ Financial before hand in the audit report. 1 Student Name: Zhu Mei Student Number: 995984001 UTORid:...
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This note was uploaded on 05/09/2011 for the course RSM 323 taught by Professor Lisaharvey during the Spring '11 term at University of Toronto.
- Spring '11