{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Project Dollarama

Inherent limitations of controls and the fact that

Info iconThis preview shows pages 13–15. Sign up to view the full content.

View Full Document Right Arrow Icon
inherent limitations of controls, and the fact that much of the audit evidence available is persuasive rather than conclusive in nature. Furthermore, because of the nature of fraud, including attempts at concealment through collusion and forgery, an audit designed and executed in accordance with Canadian generally accepted auditing standards may not detect a material fraud. While effective controls reduce the likelihood that misstatements will occur and remain undetected, they do not eliminate that possibility. Therefore, we cannot guarantee that fraud, misstatements and non-compliance with laws and regulations, if present, will be detected when conducting an audit in accordance with Canadian generally accepted auditing standards. Engagement letter signed by client for our services in 2012
Background image of page 13

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Our responsibilities We shall examine the consolidated statements of financial position of the Company as at January 29, 2012 and the related consolidated statement of comprehensive loss, consolidated statement of equity, consolidated cash flow statement and the notes to the consolidated financial statements for the year then ended. Our examination will be made in accordance with Canadian generally accepted auditing standards, and accordingly, we will plan and perform our audit to provide reasonable, but not absolute, assurance of detecting fraud and misstatements that have a material effect on the consolidated financial statements taken as a whole, including non-compliance with laws and regulations whose consequences have a material effect on the consolidated financial statements. The Code of Ethics require that we are independent when conducting this engagement. We will communicate in writing to [the Audit committee or equivalent] any relationships between the Company (including related entities) and Chiu & Weisserman LLP that, in our professional judgment, may reasonably be thought to bear on our independence. Further, we will confirm our independence with respect to the Company. If matters should arise during this engagement that can reasonably be assumed to have impaired our independence, we may need to withdraw from this engagement. The objective of our audit is to obtain reasonable assurance that the consolidated financial statements are free of material misstatement. However, if any of the following matters are identified, they will be communicated to the appropriate level of management: misstatements, resulting from error, other than immaterial misstatements; fraud or any information obtained that indicates that a fraud may exist; events or conditions identified that may cast significant doubt on the entity’s ability to continue as a going concern; any evidence obtained that indicates non-compliance or possible non-compliance with laws and regulations, other than one considered inconsequential, has occurred; significant weaknesses in the design or implementation of controls to prevent and detect fraud or misstatements; and, related party transactions identified that are not in the normal course of operations and that involve significant
Background image of page 14
Image of page 15
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page13 / 48

inherent limitations of controls and the fact that much of...

This preview shows document pages 13 - 15. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online