Your audit firm has to start an audit engagement urgently and you have been appointed as a senior auditor in that client -Thomson Reuters, UAE. Your primary duty is to help your audit assistants in getting audit evidences and evaluate the collected audit evidences. Since the client is a large-scale information processing company in Middle east, you have a lot of evidences to be collected and analysed for its reliability and relevancy. Sometime if you were not able to judge reliability of certain evidences, you used to send the same to your friend who is working in similar company in UAE to get help. One of your team members collected evidences of a few high value transaction and she was not able to finalise which is most appropriate for the assertion. The evidence she collected include the bank details of customer, the bank statements, companies cash account details and confirmation from some of the customers about occurrence of the transaction.

When your manager assigned you to prepare bank reconciliation statement of the firm to see whether there is any mistakes or issues within two days, you really find it difficult complete the work because of limited time allocated to you. You cannot say that the time is insufficient because you fear it may affect your performance appraisal in the company. Finally, you concluded that there is no issues in the BRS of the company without actually preparing one.

When you tried to collect evidences from the creditor of the company directly to confirm the amount of discount received, your manager objected that there is no point in collecting the evidence from external parties, and he said internal source is more accessible and reliable. After four weeks of audit, you and your team realised that you may not be able to complete the audit on time because many of the audit work is still pending. You were not able to move further due the resources allocated is not matching with the requirement.

You are required to

1. Do you agree with your managers statement that internal sources of audit evidences are more reliable? Give reason for your answer?(3Marks)

2. Is there any violation of ethical principles by the auditor in this case? Give reason for your answer. (5Marks)

3. What do you think is /are the reason for the teams realization that they were not able to complete the audit on time? Suggest some measures to overcome such situation in future engagement?(2Marks)

Question 2 Your audit firm has to start an audit engagement urgently and you have been appointed as a senior auditor in that client-Thomson Reuters UAE. Your primary duty is to help your audit assistants in getting audit evidences and evaluate the collected audit evidences. Since the client is a large-scale information processing company in Middle east, you have a lot of evidences to be collected and analysed for its reliability and relevancy. Sometime if you were not able to judge reliability of certain evidences, you used to send the same to your friend who is working in similar company in UAE to get help. One of your team members collected evidences of a few high value transaction and she was not able to finalise which is most appropriate for the assertion. The evidence she collected include the bank details of customer, the bank statements, companies cash account details and confirmation from some of the customers about Occurrence of the transaction When your manager assigned you to prepare bank reconciliation statement of the firm to see whether there is any mistakes or issues within two days, you really find it difficult complete the work because of limited time allocated to you. You cannot say that the time is insufficient because you fear it may affect your performance appraisal in the company. Finally, you concluded that there is no issues in the BRS of the company without actually preparing one. When you tried to collect evidences from the creditor of the company directly to confirm the amount of discount received, your manager objected that there is no point in collecting the evidence from external parties, and he said internal source is more accessible and reliable. After four weeks of audit, you and your team realised that you may not be able to complete the audit on time because many of the audit work is still pending. You were not able to move further due the resources allocated is not matching with the requirement You are required to Do you agree with your managers statement that internal sources of audit evidences are more reliable? Give reason for your answer? (3Marks) 2. Is there any violation of ethical principles by the auditor in this case? Give reason for answer (5Marks) What do you think is are the reason for the team's realization that they were not able to complete the audit on time? Suggest some measures to overcome such situation in future engagement? (2Marks)