Question

What are some question to ask the Auditor general and client if attending meeting regarding the integrity of management(client).

How to assess a firm’s competence to perform the audit.

Answer 1

Ques. What are some question to ask the Auditor general and client if attending meeting regarding the integrity of management(client).

Ans. Some question to ask the Auditor general and client if attending meeting regarding the integrity of management (Client) are:

- Whether management has provided all the requested information to auditor during the conduct of audit.

- Whether management has put limitation on scope of audit.

- Whether auditor observe any serious concern over corporate control environment.

- Whether management was not able to provide proper explanations for transactions appearing in books.

- Whether management offered some bribe or tried to give some paid assignment for not reporting some observations.

- Whether business has been fined or penalised for some illegal activities in recent past.

Ques. How to assess a firm’s competence to perform the audit.

Ans. Factors to be considered to determine firm's competence to perform the audit are:

- Independence of the partner of firm related to client's business.

- Whether partner of firm is already handling some assignment for client.

- Whether partner of firm is holding securities in client's company.

- Whether partner of firm is a related party to client in some way.

- Whether firm has adequate staff to perform the audit of client.

- Some times there are statutory obligations that firm having specified number of partners and specified turnover could audit the client, in that case firm should be fulfilling that criteria.

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