If engaged to perform a cica 5925 or sox engagement

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If engaged to perform a CICA 5925 or SOX engagement, contact the Enterprise Risk Services team. Ensure the working papers to support the 5925 opinion are located in a separate engagement file. Section 5925 An audit of internal control over financial reporting that is integrated with an audit of financial statements We discussed these factors with Michael Ross on February 8, 2012 . If you intend to use information obtained in prior years to complete this program, ensure that no changes have occurred which may affect the relevance of this information in the current year’s audit. Yes No N/A Describe Risk Accounting Cycle Insignificant Risk Done By Risk Factors Threatened profitability/stability? (Consider competitive markets, vulnerability to business environment changes, obsolescence, negative trends in earnings or cash flows, regulatory requirements, differences from industry benchmarks, political or environmental issues, N/A No revenue risk - steady  cash flow - increasing sales. Revenue/Receivables/Receip ts Yes 6 March 2011 5E
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C&W LLP Audit Program Inherent Risk changes in operations, reliance on customers/suppliers, etc.) Excessive pressures to meet third party or internal expectations? (Consider financing needs, cash flow requirements, effect of reporting on pending transactions or share prices, management’s overly optimistic comments or aggressive targets, pressure from those charged with governance, etc.) No Public company No Personal financial situation threatened by entity, especially for those with access to assets susceptible to misappropriation? (Consider financial interests in entity, compensation based on aggressive targets, etc.) N/A Related party transactions? Yes Numerous related parties/related party transactions? Yes Loan and advance,  consulting expenses Expenditures/Payables/Disb ursements No Significant related party transactions: Not in the normal course of business (including changes in the terms of transactions that no longer reflect normal terms)? N/A Not audited by MNP? No Audited by another auditor? No In a foreign jurisdiction that my have different No 6 March 2011 5E
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C&W LLP Audit Program Inherent Risk measurement standards for related party transactions? That, by their nature, are difficult to measure (i.e., intangibles)? N/A Other? If additional user defined lines are required, please use the table below. N/A Complex/unstable organizational structure? (Consider multiple entities, foreign operations, overly complex controlling interests, authority lines, high management or governance turnover, shareholder disputes, etc.) N/A Financial statement issues? (Consider significant estimates/judgments, unusual transactions, hedge accounting, complex fair value models, prior period adjustments, etc.) Yes Significant estimates involving judgments difficult to corroborate (i.e., fair values, realization of assets/contingent liabilities/contingent assets/provisions or other uncertainties, revenue/expense recognition, potential going concern issues)?
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