Question
You are an assistant manager at CrinePen have been allocated to the audit of BenCo, a listed company which has been an audit client for
You are an assistant manager at CrinePen have been allocated to the audit of BenCo, a listed company which has been an audit client for tenyears and specialises in manufacturing and selling essential oils. Zac Houghwas the audit engagement partner for BenCo and as he had completed seven years as the audit engagement partner, he has recently been replaced by a new partner. The current audit engagement partner has suggested that in order to ensure CrinePen maintain their expertise on the audit, Zac Hough could take onthe role of Engagement Quality Control Reviewer this year. The total fees received by CrinePen for last year amounted to 17% of the firms total fee income. The current years total fee income for audit andnonauditservices is expected to be higherthan last year. The audit senior manager for BenCo has just announced that he is leaving CrinePen to join BenCo as a management accountant.
Question
Which THREE of the following should the Internal Audit team of BenCo NOT be involved in?
- Observing controls being carried out by BenCo's staff
- Performing reconciliations
- Designing and implementing internal controls to address deficiencies
- Reporting internal control deficiencies directly to the board of directors
- Authorising transactions
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started