Questions : all complete.

Describe the six matters that should be considered before accepting an audit engagement in the event a firm is successful in a tender.

Emily, Luna and Lio started a partnership business in January 2015 using a bank loan for finance. The business retails luxury handmade furniture currently in a single retail outlet. Revenue for the first year of trading was $90 million. the partnership projects a rapid growth in the next few years.

The three partners are ware that the partnership is not required to subject it's annual financial statements for audit by the external auditors. however, they are unsure whether there would be any benefits in a voluntary audit of die first first years financial statements. The partners are also aware that a review of the financial statements could be performed as an alternative to a full audit for bank purposes.Emily, Luna and Lio currently employ a part time, partly qualified account Stan who has prepared the balance sheet statement as at 31 Dec 2014 and the income statement for the year ended 31dec 2014.

Explain the potential benefits the partners could derive from financial statements audit of the partnership.

With specific references to emily, luna and Lio, discuss the objectives of a review engagement..

Contrast the level of assurance provided by a review with that provided by an audit of financial statements.

Describe five matters subject to inquiry by the successor auditor

Explain matters to be considered in deciding whether or not to accept appointment as auditors of a firm.

What procedures should be adopted to be able to provide assurance report?