Audit Paper Tommy Case
2. Assume that you are Tommy O’Connell and have learned that Carl Willmeth will be working for you on the Altamesa audit engagement. Would you handle this situation any differently than Tommy did? Explain
We would begin the audit engagement the same as Tommy, but after realizing that Carl’s work might not uphold the auditing standards of the engagement, bring it to the attention of Morrison. According to the AS 10 p.5 (b)- Supervision Of Engagement Team Member- direct engagement team members to bring significant accounting and auditing issues arising during the audit to the attention of the engagement partner or other engagement team members performing supervisory activities so they can evaluate those issues and determine that appropriate actions are taken in accordance with PCAOB standards; Moreover , according to the note in AS 10 p.5-b , In applying due professional care in accordance with AU sec. 230, each engagement team member has a responsibility to bring to the attention of appropriate persons, disagreements or concerns the engagement team member might have with respect to accounting and auditing issues that he or she believes are of significance to the financial statements or the auditor's report regardless of how those disagreements or concerns may have arisen. Tommy also must be mindful of the assignments given to Carl based on his lack of expertise and knowledge. AU 230.06 mention asset that Auditors should be assigned to tasks and supervised commensurate with their level of knowledge, skill, and ability so that they can evaluate the audit evidence they are examining. The auditor with final responsibility for the engagement should know, at a minimum, the relevant professional accounting and auditing standards and should be knowledgeable about the client. The auditor with final responsibility is responsible for the assignment of tasks to, and supervision of, assistants. However it is effective for audits of financial statements for periods ending
We would begin the audit engagement the same as Tommy, but after realizing that Carl’s work might not uphold the auditing standards of the engagement, bring it to the attention of Morrison. According to the AS 10 p.5 (b)- Supervision Of Engagement Team Member- direct engagement team members to bring significant accounting and auditing issues arising during the audit to the attention of the engagement partner or other engagement team members performing supervisory activities so they can evaluate those issues and determine that appropriate actions are taken in accordance with PCAOB standards; Moreover , according to the note in AS 10 p.5-b , In applying due professional care in accordance with AU sec. 230, each engagement team member has a responsibility to bring to the attention of appropriate persons, disagreements or concerns the engagement team member might have with respect to accounting and auditing issues that he or she believes are of significance to the financial statements or the auditor's report regardless of how those disagreements or concerns may have arisen. Tommy also must be mindful of the assignments given to Carl based on his lack of expertise and knowledge. AU 230.06 mention asset that Auditors should be assigned to tasks and supervised commensurate with their level of knowledge, skill, and ability so that they can evaluate the audit evidence they are examining. The auditor with final responsibility for the engagement should know, at a minimum, the relevant professional accounting and auditing standards and should be knowledgeable about the client. The auditor with final responsibility is responsible for the assignment of tasks to, and supervision of, assistants. However it is effective for audits of financial statements for periods ending