RSM323H1 Lecture Notes - Lecture 6: Audit Evidence, Engagement Letter, Tax Preparation In The United States
Document Summary
A case on audit quality and working papers. A complaint has been filed with the provincial institute against a sole practitioner, am. Your firm has been asked to perform a peer review. Am works in a small town which is a bit isolated. Most of his work is compilation and review, as well as tax preparation. He has a few audit clients, including evergreen motors, a large regional car dealership. The bank holding evergreen"s debt filed the complaint when evergreen went into bankruptcy. At that time it found that its general security on the fixed assets of evergreen was not sufficient to cover its loan. You meet with am and begin reviewing the working papers. They appear to be in relatively good shape, although the page references are all numbers, not the usual combination of numbers and letters. Also, the administrative files are lacking time budgets, which am explains away as.
