MBA ACCOUNTING AND FINANCE

AUDITING & ASSURANCE

Question 2

Your firm is the auditor of Happy Days, an entity which provides hospitality packages at racecourses around a single country. The managing director of Happy Days has suggested the following to your managing partner:

1. All members of the audit team to be offered two free tickets to a major event at the racecourse of their choice,
2. last years audit senior should be seconded to the organization for a six-month period. The current years audit is not yet underway, iii. the firm also provide internal audit services.

Required

Discuss which, if any of the above proposals would be acceptable to your firm and (if not state why not), and set out the main safeguards, if any, which would be required.

Important assignment instructions

• In terms of structure, presentation and style you are normally required to use:
• ABS preferred Microsoft Word settings o Author-date style APA referencing (which includes in-text citations plus a reference list).
• All references must be from credible sources such as books, industry related journals, magazines, company documents and recent academic articles.
• Your grade will be adversely affected if your assignment contains no/poor citations and/or reference list and if your assignment word length is beyond the allowed tolerance level.