Question details

You are meeting with executives of Cooper Cosmetics Corporation
$ 10.00

You are meeting with executives of Cooper Cosmetics Corporation to
arrange your firm’s engagement to audit the corporation’s financial statements for the year
ending December 31. One executive suggests the audit work be divided among three staff
members. One person would examine asset accounts, a second would examine liability
accounts, and the third would examine income and expense accounts to minimize audit time,
avoid duplication of staff effort, and curtail interference with entity operations.
Advertising is the corporation’s largest expense, and the advertising manager suggests
that a staff member of your firm whose uncle owns the advertising agency that handles the
corporation’s advertising be assigned to examine the Advertising Expense account because
the staff member has a thorough knowledge of the complex contact between Cooper Cosmetics
and the advertising agency.

Required:
a. To what extent should auditors follow the client’s suggestions for the conduct of an audit?
Discuss.
b. List and discuss the reasons that audit work should not be assigned solely according to
asset, liability, and income and expense categories.
c. Should the staff member of your accounting firm whose uncle owns the advertising
agency be assigned to examine advertising costs? Discuss.

Available solutions
  • You are meeting with executives of Cooper Cosmetics Corporation
    $10.00

    a. Auditors should not follow clients’ suggestions about the conduct of an audit unless the suggestions clearly do not conflict with their profes

    Submitted on: 15 Nov, 2017 12:51:25 This tutorial has not been purchased yet .