5:04 .. .O Aaas Version 1 300 and maximum of 400 words. While submitting answers, kindly do not include the instructions page given above as it will add more plagiarism. Question 1 Ali Partners are famous audit firm in Muscat. They have many clients both in Oman and UAE. Last month they signed an engagement letter with a client based in UAE. The client is a large-scale manufacturing company spanning its operation across middle east. Ali partners sent a team of 25 auditors consisting of one audit manager, 3 audit leads 5 subject expert and remaining all audit assistant. After a week of audit, audit team realised that the team strength is insufficient to handle such a big client, they requested the headquarters to send some more people to the client premises. Since there is a complete lock down across the world due to COVID 19, Ali partners could not sent the additional team to UAE. The head office of Ali partners requested the client management to depute some employees of the company to overcome the shortage, they sent of their senior members to join the audit team. Ali Partners are having comfortable level of staff now to complete the audit work. After two weeks of audit work, the audit lead realised that the general manager in charge of finance of the company is one of his cousin Mr. Marin and they studied together in schools and college. The general manager assisted the audit team to get all material evidence they required throughout the audit process. In some area of audit, Mr. Mazin assured to the team that there will not be any mistake or error. The team believed this and proceeded to the other risky areas of financial statements. The audit manager realised that the team members are not able to find any errors or frauds even after third week of audit. When he observed the work of the team, he realised that they are casually checking the books of accounts and evidences. The team only listen to the response to inquiries but did not do any cross checking. Once Mr. Ali asked his team members to evaluate one of the management estimate the team came up with different argument. They cannot take a call on which one is correct and which one is wrong. He would like to give a refresher training to the team to increase overall effectiveness of audit. You are required: Do you find any ethical issues in the above cases? Give reason for your answer (5 Marks) 2. What do you think the important qualities of an auditor this team doesn't possess to identify crrors and frauds.? (5 Marks) Question 2 Your audit firmas to SRT A ct ensagement urgently and you
