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11. (a) Talal Al Harthy, CPA, does the bookkeeping, prepares the tax returns, and performs various management services for Sayyid Company, but does not do
11. (a) Talal Al Harthy, CPA, does the bookkeeping, prepares the tax returns, and performs various management services for Sayyid Company, but does not do the audit. One management service involved the assessment of the computer needs and the identification of equipment to meet those needs. Talal recommended a product sold by Computer Company, which has agreed to pay Talal a 10% commission if Sayyid Company buys its product. (). Basam Al Farsi, CPA, has served Hassan Company as auditor for several years. In addition, Basam has performed other services for the company. This year, the financial vice president has asked Basam to perform a major computer system evaluation (c. Due to the death of its controller, an audit client had its external auditor, Ghazi Al Amri, CPA, perform the controller's job for a month until a replacement was found. REQUIRED Identify the threats to independence in the situations described above and suggest how the firm might deal with them. (0.5 mark +1 mark + 1 mark) 12. Hilal construction is a large limited liability company has recently appointed you as the company's external auditors. The company has its own internal audit department. Professional clearance has been obtained from the previous auditors and an audit engagement letter has been issued. It is now Jan 1, 2020, and you have been assigned to the audit team who will visit the company in order to obtain as much relevant knowledge as possible for use in planning the audit of the company's financial statements for the year ending Dec 31, 2020 What are the FIVE principle contents you would find in your Engagement Letter? (2.5 marks)
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