Help me study for my Accounting class. I’m stuck and don’t understand.
Assume you are a Partner at an accounting firm. Read the facts discussed, answer what are some issues that should concern YOU, your FIRM and the rest of the audit team, and how should YOU, your FIRM and the rest of the audit team address these issues.
Also, tell the engagement team what you believe the planning materiality for the overall financial statements should be.
Your thoughts should address the audit plan, the effectiveness and efficiency of the audit, the report on the financial statements, note disclosures, and ethics and independence (AND RELATED SAFEGUARDS). ONLY USE INFORMATION WE HAVE LEARNED FROM CHAPTERS 1 THRU 7 AND CHAPTER 17. (ISBN 978-1-259-91698-4)
DO not state in your paper that your Firm can increase the fixed fee. IT IS NOT AN OPTION.
Assume that both these methods of revenue recognition are allowable
Completed contract method and Percentage of completion method
Use Arial 11 font – double spaced- one inch margins
The paper should be a maximum of 6 pages
Just start the paper with the Heading “KEY ISSUES AND HOW TO ADDRESS THEM—AUDIT OF ECW, INC—DECEMBER 31, 2020. Then begin with the key points YOU as the Partner on the ECW engagement and your Firm should address. – There is no reason to have an opening paragraph introducing the topic – I KNOW WHAT THE TOPIC IS.