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FIN6002: State and explain the 5 ethical principles outlined by the International Ethics Standards Board for Accountants: Audit Assignment, AU, UK
| University | Arden University (AU) |
| Subject | FIN6002: Audit Assignment |
Question 3
You work for a firm of chartered accountants who specialise in external audit, tax advice, and retail systems. Most of your clients are small retail direct sales companies.
A large national company, Prina Plc, which operates in the same industry as several of your clients has approached you to work on their external audit after a disagreement and challenges faced with the previous auditor. They have offered a fee that would constitute 25% of the total revenue of your firm, but only on the condition that the work was completed within 3 weeks of their year-end.
Buy Answer of This Assessment & Raise Your Grades
Required:
a) State and explain the 5 ethical principles outlined by the International Ethics Standards Board for Accountants (IESBA) with examples for each principle.
(10 marks)
b) If your firm accepts this engagement state FIVE key points that must be covered by the engagement letter per ISA 210, then briefly explain the significance of the engagement letter.
(5 marks)
c) Discuss four potential ethical and other issues that your firm may face in the above scenario and conclude whether or not your firm should accept the appointment.
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