Governance Reporting Reporting is a vital way of sharing financial information. Therefore, it will be our responsibility to report to you on whether the financial accounts have been arranged according to the accounting strategies as stated by you. Furthermore, we would report according to auditing process undertaken by us, on whether anything has emerged to our consideration for specifying that the revenue figure described in financial reports has not been appropriately extracted from book of records, or book of records do not record and clarify the transactions, with respect to the understanding of activity. Scope of Work Our auditing process will include those activities we consider essential to allow us to report on the aspects of financial reporting and will comprise evaluating information and descriptions provided to us for conducting such investigations about the managers as we believe essential. It is to clarify you that we are not liable for the maintenance of bookkeeping records of the business, however we shall be pleased to advise on these aspects if required. The financial statements will have a declaration for your approval for having every relevant accounting record. As a consequence of our tasks, we can be capable of providing suggestions on improvements that can be made to the accounting records. Nevertheless, our work must not be dependent on the disclosure of misdeeds. However, if an examination is required particularly to detect misdeeds, it can be independently conducted on request (The Institute of Certified Public Accountants in Ireland, 2003). Applicable Legislation The engagement letter will be administered by and construed according to International Standards on Auditing (ISA) 540 and pertinent national standards and practices. ISA deals in duties of auditors with respect to fair value bookkeeping and associated financial disclosures. These standards necessitate that we plan and perform the audit in order to attain practical assurance regarding if the prepared financial statements determined to be are free from misstatements or not. Restriction on Audit Liability Due to the characteristics of audit and other inherent restrictions, there is always inevitable risk of financial mistreatments to remain undiscovered (Financial Reporting Council, 2012). Agreement on Terms We will look forward towards complete collaboration with your employees and we believe that they will provide us whatever we require to accomplish our tasks. The fees will be based on the time required for addressing the required tasks along with other additional expenses. Once these terms are agreed, the letter would be effective until it is changed. Please confirm us about your agreement with the provided terms by signing this letter and returning to us. Yours Sincerely, Loughran and Shrives Chartered Accountants Acknowledged on behalf of Land Securities Group Plc by Signature: Date: Ethical Issues Leaflet The leaflet deals in legal and ethical implications of audit. It provides the standards to which we are committed to maintain utmost professional and ethical standards in order to assist our clients about quality auditing. Integrity The first ethical issue is integrity. It states that we will undertake the auditing tasks and responsibilities with the utmost level of intelligence and integrity. Our work will be
Issue in Contemporary Auditing Letter of Engagement Land Securities Group Plc., Dear Sir, Thank you for assigning us as auditor for Land Securities Group Plc. In accordance with the recommendations of Financial Reporting Council (FRC), we would prefer to officially start out our understanding about the audit services you want us to conduct…
In this process, it may happen that the transactions might have occurred after balance sheet date but before the issuance of the financial statement. This affects the financial statements and therefore adjustments are made and properly mentioned in the statements.
Contextually, in terms of both auditors and clients, this letter primarily depicts the terms and the provisions of the engagement where the purpose of the engagement and the terms of the compensation for the auditors are appropriately mentioned. The purpose of this letter is to establish an engagement relationship amid Hammerson plc, a FTSE listed company and Loughran and Shrives Chartered Accountants, who would act as an auditor for the company.
It also involves auditor’s responsibility towards the client. An engagement letter describes the lawful relationship or an engagement between an ‘audit firm’ along with its clients. The engagement letter involves within it the terms and the conditions of the engagement, which mainly addresses the opportunity of the particular engagement and the details of the compensation complying with the firm.
There are those that argue that long-term relationships (auditor tenure) build more knowledge about the firm and its accounting procedures which, in turn, translates into more effective auditing practice and skills. Other stakeholders in the business world believe that audit quality is reduced when rotating auditors due to the lack of familiarity about business processes and accounting, thus impacting the ability of auditors to do a thorough job in assessing best practice within the organisation.
Similarly, managements have taken strategies to ensure accountability in the use of funds in order to create a strong positive relationship with the shareholders. One of practice that firms use to ensure reliable financial information is auditing. Auditing entails a systematic examination of records, financial performance, and statements.
rvice is another type of assurance service, which provides information through written statements, and this increases the reliability of the information of assertion of the other responsible party. An auditing service also helps in investigating and evaluating with evidence the
It can be said that the only real responsibility a company has is to the shareholders is profit, therefore profit is the only motivation for a company. However, that assumption can no longer be taken as granted. Government pressure, regulatory
These contents include: The purpose or objective of the engagement, Managements responsibility with regard to the financial statements, the financial reporting framework to be adopted, scope of the audit, form of the report
Other stakeholders in the business world believe that audit quality is reduced when rotating auditors due to the lack of familiarity about business processes and accounting, thus impacting the ability of auditors to