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As the partner in charge of audits at Dewey, Wright, and Moore, you have decided to accept AV Imports and Exports as a new audit client. You have gone through all necessary planning, such as the requirements of SAS 56 as well as other pronouncements. You are now at the stage of preparing a planning memorandum.
You have been working on the audit engagement of the company for the previous year-end, and you are in the final stages of completing the audit. You plan to have all the fieldwork completed and the report signed by May 10 of the current year. You are concerned about some transactions that have occurred just after year-end that may affect the financial statements you are auditing. You are aware that this area is governed by Statement of Financial Accounting Standards (SFAS) 165. You research the details of the standard.
Prior to accepting the audit, you became aware that the company’s financial statements may have been misstated due to the possible occurrence of errors, fraud, or illegal acts that ultimately led to the going concern opinion expressed by the previous auditor Morris & Clark. As auditor, you need to determine your course of action. Create a 10 -12 page report starting with a prepared formal audit planning memorandum showing all these activities as the firm Dewey, Wright, and Moore, for AV Imports and Exports.
After the memorandum is complete, continue to complete your report by researching SFAS 165 using the textbook, the Argosy University online library resources, and the Internet and respond to the following questions:
Examine each scenario and determine what type of audit report should be issued. Give reasons for your decisions.
You should have at least 6 outside cited sources using APA format in addition to your textbook.
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