Theressa Mae C.

Ingente

Audit411

9:00am-12:00nn

Prof. Ellis Victor Cobarrubias, CPA

A. Engagements may also contain more risk than others. Therefore, in this form of
situation, auditors will be in greater risk by designing more systematic audit program.
Auditors will surely increase audit fee. An engagement that is tough is an invalid
reason for an auditor not to accept the engagement. Some firms will accept such
kind of engagement. Lewis Edmond has matured to the point where he would no
longer engage on such questionable activities, although Edmond had lied. All other
facts about Edmond indicates that he’s a man with integrity.

B. The audit may be in a high threat engagement since the audit opinion will be used
to acquire additional finances. The occurrence between Edmond and IRS clearly
stated that Edmond is lacking adequate integrity and the firm will probably not to
engage to his corporation. There’s a a possibility that company’s audit approaches
will no longer detect the wrong doings if Lewis Edmond will choose to misstate the
financial statement.
C. Accepting Lewis Edmond as patron will rely on how much danger Tower &
Tower company is willing to take. The most persuasive element to simply accept the
engagement is that Edmond is an person of integrity and
all other facts approximately him and his organisation is correct and
he perhaps matured and could in all likelihood now not interact in
questionable activities once more. then again, the mostpersuasiven element on why
Tower & Tower must not be given the engagement is that Edmond might pick out to
misstate the monetary statements again and the firm’s audit strategies might no
longer hit upon it. Lee Tower ought to not take delivery of the brand
new customer engagement because of the evidenceobserved that Lewis Edmond
has committed fraud 10 years ago. This incident may have befell ten years in the
past but it could affect this engagement. because Lewis Edmond devoted the
fraud deliberately, hides it from the authority, or even lied that
he misplaced the files and statistics him having a great popularitywould not no
longer be a valid motive to just accept the engagement.
furthermore, Tammy Potter is appointed to be part of the board of administrators of
a local civic organization and that the chairman of that company is Lewis
Edmond, who is also the owner of the possible client, the Tierra organization which
give Tower to not take delivery of the engagement. Accepting the engagement may
also result to threats. it will additionally create chance to the company’s call if Tower
will receive the engagement. If Lee Tower might accept the engagement, it
might best create a hazard inside the firm’s call. moreover, knowing that he has
a excessive position in board, he can easilyexchange the details of the audit and
threaten the firm. In end, the first-class choice is for Lee Tower now not to simply
accept the engagement.