Chan & Chow offer their clients a range of profk•cstonni •.crwces, inciuding: a. providing advice on accounting policies and at; OLP ring ed •ncards b. auditing annual financial reports c. providing assistance to management and the board in strengthening internal controls and corporate governance practices d. providing assistance with the establishment and training of internal audit teams e. checking compliance with company policies and legislative regulations
Required: For each of the five (5) services (a. — e.) listed above, determine whether it is an assurance engagement or not and explain your answer.
Week 2 Question (10 marks)
Shelly, Kelly & Mark (SKM) are the auditors of Bass. SKM’s IT consulting division has undertaken a number of accounts receivable management system implementation projects and is actively looking for opportunities to perform more of this type of work. As a result, SKM’s IT consulting division is planning to submit a proposal to implement an accounts receivables management system at Mass.
(a) Identify and explain the two primary threats to Independence for SKM. (S marks)
(b) Outline an appropriate safeguard to address each of the threats identified above. (S marks)