Question
2. Williams Gens, an audit partner with your firm, has selected you to prepare a memo regarding the acceptance of CBA as an audit client.
2. Williams Gens, an audit partner with your firm, has selected you to prepare a memo regarding the acceptance of CBA as an audit client. The audit will, if accepted, occur during the firmss slow season when there is excess employee capacity.
Consider the following category:
1. The predecessor auditor explained that, due to disagreements on the application of GAAP, CBA Inc. chose to engage another auditing firm. The auditor, fearing Litigation would not specify the specific area of disagreement.
2. CBA regularly pays its accounts payable 30-60 days late.
3. Management turnover has been excessive.
4. CBA is in a highly regulated, competitive industry.
5. Account Receivable turnover is 43 days.
Requirement for question 2:
What are the procedures that you would undertake for each of the category 1-5?
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