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please type your answer. not handwriting. This what I have from the question. please read the AU-C620 and 600. give some ideas to make decisions.
please type your answer. not handwriting. This what I have from the question. please read the AU-C620 and 600. give some ideas to make decisions.
AP5.11 (LO 4) Challenging Research Using a specialist SolarTubeGen is a start-up company in the renewable energy sector. The founder of SolarTubeGen, Fritz Herzberg, has developed cutting-edge technology to convert the energy in the sun's rays to electricity via a novel system of mirrors designed to focus the sun's rays onto tubes containing a patented type of gas, which then heats and expands to drive turbines. Ramirez & Walker LLP has won the contract for the first audit of SolarTubeGen on the basis of its expertise in the energy sector. However, the lead partner, Mark Ramirez, recognizes the success of the audit is dependent on the correct assessment of the technology being used at SolarTubeGen. Mark specified in the successful audit bid documents that the audit will use an external specialist to help with valuation of the company's assets. Fritz Herzberg is very protective of his company's intellectual property and is resistant to Mark's first suggested specialist, Manfred Hamburg. Fritz believes that Manfred Hamburg is hostile toward him because they clashed when they both worked for a German company making photovoltaic cells in the 1990s. Fritz has suggested another specialist, Lily Beilherz, with whom he has had good working relations over the last 20 years. Required a. Advise Mark Ramirez about the choice of a specialist for the audit of SolarTubeGen. What must he consider when making his choice? Refer to AU-C 620 Using the work of an Auditor's Specialist to support your answer. (ASB standards can be accessed at www.aicpa.org/research/standards.) b. SolarTubeGen takes over another renewable energy company during the second-year audit. The new subsidiary is based in another country and has previously been audited by a local audit firm. Evaluate how Mark should handle the new audit responsibilities brought about by the client's expansionStep by Step Solution
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