Assignment – BBA (Hons) – NCBAE

The following assignment should be delivered by Monday, April 08, 2013

You are the audit manager in the audit firm of Dark & Co. One of your audit clients is NorthCee Co, a company specialising in the manufacture and supply of sporting equipment. NorthCee have been an audit client for five years and you have been audit manager for the past three years while the audit partner has remained unchanged.

You are now planning the audit for the year ending June 30, 2012. Following an initial meeting with the directors of NorthCee, you have obtained the following information.

  1. NorthCee is attempting to obtain a listing on a recognised stock exchange. The directors have established an audit committee, as required by corporate governance regulations, although no further action has been taken in this respect. Information on the listing is not yet public knowledge.
  2. You have been asked to continue to prepare the company’s financial statements as in previous years.
  3. As the company’s auditors, NorthCee would like you and the audit partner to attend an evening reception in a hotel, where NorthCee will present their listing arrangements to banks and existing major shareholders.
  4. Finally, you have just inherited about 5% of NorthCee’s share capital as an inheritance on the death of a distant relative.

Required:

  1. Identify, and explain the relevance of, any factors which may threaten the independence of Dark & Co’s audit of NorthCee Co’s financial statements for the year ending 31 December 2007. Briefly explain how each threat should be managed.
  2. Explain the actions that the board of directors of NorthCee Co must take in order to meet corporate governance requirements for the listing of NorthCee Co.
  3. Explain why your audit firm will need to communicate with NorthCee Co’s audit committee for this and future audits.

You are required to mail the answers to assignment@sulehri.com in .doc/.docx format as well as submit a hard copy by April 08.
Full name and ID must be mentioned in the assignment submitted.

Short URL: http://sulehri.com/?p=1601

Posted by on Dec 6 2012. Filed under Assignments, Misc. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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