Ostling, Auktoriserad Revisor, accepted an engagement to audit the financial statements of Sandnes Company of Gteborg, Sweden.

Question:

Ostling, Auktoriserad Revisor, accepted an engagement to audit the financial statements of Sandnes Company of Göteborg, Sweden. Ostling’s discussions with Sandnes’s new management and the predecessor auditor indicated the possibility that Sandnes’s financial statements may be misstated due to the possible occurrence of errors, irregularities and illegal acts.

Required:

A. Identify and describe Ostling’s responsibilities to detect Sandnes’s errors and irregularities. Do not identify specific audit procedures.

B. Identify and describe Ostling’s responsibilities to report Sandnes’s errors and irregularities.

C. Describe Ostling’s responsibilities to detect Sandnes’s material illegal acts. Do not identify specific audit procedures.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...