Brien & Associates Chartered Accountants (BA) is a registered audit firm based in Auckland. Five of the six partners in the firm are licensed auditors in accordance with the Auditor Regulation Act 2011. As the Managing Partner, Mr. Brien wants to grow the firm’s audit and assurance practice. Considering the partners’ extensive experience in auditing FMC reporting entities, Brien is looking for new audit clients which is Fletcher Construction LTD(https://en.wikipedia.org/wiki/Fletcher_Construction). Independence confirmations from all the audit partners of BA showed that there are no independence threats in existence between the partners, their families and related entities, and to any of the listed company in New Zealand. Brien’s instructions to the audit teams are to evaluate the engagement risk of acquiring the audit of the selected company for the 2020 financial year end. In addition, the audit team is to identify risk factors and assess inherent risk, through performing risk assessment procedures and gaining an understanding of the potential client. The audit procedures are to be performed in accordance with the requirements of New Zealand auditing standards ( ISA(NZ)).

Independence

1. Document confirmation that no independence conflicts exist with BA partners and the prospective client.

2. Obtain independence confirmations from all staff on the audit team.