Ethical Requirements – NBC Institute

AA – Nov 2021 – L2 – Q6 – Ethical Issues in Auditing

Explains reasons for auditor resignation, resignation procedures, and ethical position for successor auditors.

Question

Ade, Chika, Idris and company is an independent firm of Chartered Accountants. The firm intends to resign its appointment for non-payment of professional fees to it for some time by the management of Tisco Ventures Limited.

Required:

a. Explain other reasons that may cause a professional firm to resign from an audit engagement. (3 Marks)

b. Explain the procedures for the resignation of current auditors as per provision of company legislations. (10 Marks)

c. State the ethical position as stated in the ICAN code on another auditor taking up the appointment after the resignation of the current auditor applicable to this type of situation. (2 Marks)

Answer

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Tags: Audit Engagement, Auditor Resignation, Ethical Requirements, ICAN Code, Legislation, Professional Conduct
Level: Level 2

Topic: Ethical Issues in Auditing
Series: NOV 2021

AAA – May 2016 – L3 – Q2a – Practice management | Professional responsibility and liability

Advise on the matters to consider in relation to accepting a new audit client according to ISQC 1.

Question

Papa Nii and Papa Nana who just qualified as Professional Accountants have decided to enter into professional practice under a firm name Nana Nii & Associates. These two have been trainee accountants of an Audit and Assurance firm for three years before qualifying.

For their first engagement, the CEO of Mberdane Ltd. has nominated Nana Nii & Associates for appointment as auditors of his company though Mberdane Ltd was a former client of their former firm, Papa Nii and Papa Nana were never on the engagement team of Mberdane Ltd. As beginners, Papa Nii and Papa Nana have intended to follow best practices as required by ISQC 1 “Quality control for firms that perform audits and reviews of financial statements, and other assurance related services”. However, they are not clear on the matters that they have to consider in their acceptance decision according to the standard. They have approached you, a senior partner of their former firm, for advice.

Required:
Advise Papa Nii and Papa Nana on the matters that they may have to consider in relation to the acceptance decision on their nomination. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Client Acceptance, Competence, Ethical Requirements, Integrity, ISQC 1
Level: Level 3

Topic: Practice management, Professional responsibility and liability
Series: MAY 2016

AA – Nov 2021 – L2 – Q6 – Ethical Issues in Auditing

Explains reasons for auditor resignation, resignation procedures, and ethical position for successor auditors.

Question

Required:

a. Explain other reasons that may cause a professional firm to resign from an audit engagement. (3 Marks)

b. Explain the procedures for the resignation of current auditors as per provision of company legislations. (10 Marks)

c. State the ethical position as stated in the ICAN code on another auditor taking up the appointment after the resignation of the current auditor applicable to this type of situation. (2 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Engagement, Auditor Resignation, Ethical Requirements, ICAN Code, Legislation, Professional Conduct
Level: Level 2

Topic: Ethical Issues in Auditing
Series: NOV 2021

AAA – May 2016 – L3 – Q2a – Practice management | Professional responsibility and liability

Advise on the matters to consider in relation to accepting a new audit client according to ISQC 1.

Question

Required:
Advise Papa Nii and Papa Nana on the matters that they may have to consider in relation to the acceptance decision on their nomination. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Client Acceptance, Competence, Ethical Requirements, Integrity, ISQC 1
Level: Level 3

Topic: Practice management, Professional responsibility and liability
Series: MAY 2016

Question Tag: Ethical Requirements

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AA – Nov 2021 – L2 – Q6 – Ethical Issues in Auditing

Explains reasons for auditor resignation, resignation procedures, and ethical position for successor auditors.

AAA – May 2016 – L3 – Q2a – Practice management | Professional responsibility and liability

Advise on the matters to consider in relation to accepting a new audit client according to ISQC 1.

AA – Nov 2021 – L2 – Q6 – Ethical Issues in Auditing

Explains reasons for auditor resignation, resignation procedures, and ethical position for successor auditors.

AAA – May 2016 – L3 – Q2a – Practice management | Professional responsibility and liability

Advise on the matters to consider in relation to accepting a new audit client according to ISQC 1.

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AA – Nov 2021 – L2 – Q6 – Ethical Issues in Auditing

Explains reasons for auditor resignation, resignation procedures, and ethical position for successor auditors.

You're reporting an error for "AA – Nov 2021 – L2 – Q6 – Ethical Issues in Auditing"

AAA – May 2016 – L3 – Q2a – Practice management | Professional responsibility and liability

Advise on the matters to consider in relation to accepting a new audit client according to ISQC 1.

You're reporting an error for "AAA – May 2016 – L3 – Q2a – Practice management | Professional responsibility and liability"

AA – Nov 2021 – L2 – Q6 – Ethical Issues in Auditing

Explains reasons for auditor resignation, resignation procedures, and ethical position for successor auditors.

You're reporting an error for "AA – Nov 2021 – L2 – Q6 – Ethical Issues in Auditing"

AAA – May 2016 – L3 – Q2a – Practice management | Professional responsibility and liability

Advise on the matters to consider in relation to accepting a new audit client according to ISQC 1.

You're reporting an error for "AAA – May 2016 – L3 – Q2a – Practice management | Professional responsibility and liability"

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